teaching notes

Case STUDIES

Volume 1 Case Study 4

IN SPORT MANAGEMENT

TEACHING NOTES Objectives of the Case This case is designed highlight (1) elements of group conflict arising from demographic diversity and (2) the nature of LMX within sport organizations. Though this case actually involves one manager and two employees working within a grounds crew function for a collegiate baseball program, it provides a basis for instructors to expose students to relevant issues that may occur in an entry-level sport management position. Specifically, the case is centered on a model of work group demographic diversity, conflict, and performance in accordance with Pelled’s (1996) model. The case also is infused with elements of LMX along the way. Perhaps the greatest utility in this case is found in the potential for rich discussions over the topics of conflict in organizations, demographic diversity with particular respect to age and gender, and manager/employee dyads that form as a function of positive externalities. Demographic diversity refers to the degree to which a unit is heterogeneous with respect to demographic attributes (Pelled et al., 1999). More precisely, the distribution of demographic differences within a specified organization, such as professional baseball team, is known as organizational demography (Pfeffer, 1983). A diverse group can allow for the ability to maximize profits and task outcomes. Diversity among coaching staffs, for example, has been linked to improved decision making (Cunningham & Sagas, 2004c), which can itself be linked to improved team performance. At the same time, a diverse group may also lead to affective conflict which is highly detrimental to group activity. Notably, in a critical review of 40 years of diversity research, Williams and Reilly (1998) observed “that individuals who are different from the majority race in an organization are more likely to leave, to be less satisfied and psychologically committed to the organization, and receive lower performance evaluations” (p. 115). Several sport-specific studies have produced similar findings; in particular, diverse groups have been linked to decreased organizational commitment and a failure to form strong in-group identity (Cunningham, 2007; Cunningham & Sagas, 2004b). Thus, as managers recognize these challenges, the topic of demographic diversity becomes central (Pelled, 1996). Moreover, with particular application to coaching staffs in an athletic team context, this knowledge could prove especially valuable (DeHass, 2004). The second key topic introduces LMX theory in a way to demonstrate the value of working relationships between superiors and their subordinate within an organization. Leader-member exchange refers to a dyadic exchange between a supervisor (i.e., Lonnie) and an employee (i.e., Christy and/or Elberto). This relationship is usually grounded in the concepts of mutual respect, trust, and obligation (Graen & Uhl-Bien, 1995). Superiors can offer many things to employees and hope for reciprocation from the organization. This view of the organizational relationships suggests that the work unit (group) becomes differentiated based on leader-member dyads, which have varying levels of quality (Scandura & Graen, 1984). Certain subordinates may enjoy close, high-quality LMX relationships with their supervisors. Relationships such as these are likely to produce positive outcomes such as trust and emotional support. Those subordinates who experience high-quality LMX relationships also are likely to experience work-related perks, including favors, rewards, and increased supervisor contact. In exchange for the high quality outcomes stemming from the relationship, it is not uncommon for supervisors to expect subordinates in high-quality LMX relationships to perform tasks that are beyond the scope of the formal job description. That is, these employees are expected to engage in extra-role behaviors that go above and beyond their formal job responsibilities. Conversely, subordinates in low-quality LMX relationships do not enjoy the same levels of trust or emotional support nor are they typically awarded the same privileges. However, supervisors release subordinates in low-quality LMX relationships from the high expectations that supervisors place on the subordinates’ high-quality LMX counterparts. As a result, not all employees in a business organization will seek out high-quality LMX relationships.

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Basic Pedagogy Course. Personnel Management or Organizational Behavior Student level. This case is ideal for undergraduate students, but topics are not grade or age specific. All members can and likely will be a part of a team at one point. Furthermore, because the information provided in this case is relevant to sport settings outside of an intercollegiate baseball context, undergraduate and graduate students can benefit from this information and the analysis of group activities. Prerequisite knowledge needed. Students should have a basic understanding of the concepts and theories on group behavior and should have the ability to analyze group interactions. They should be aware of the changing issues of diversity and how this concept is not isolated to issues of race and ethnicity, but can include age, education, and job experience. Students also should understand the basic principles of Pelled’s (1996) model of diversity and have a general awareness of leadership theories, especially leader-member exchange. They should have the basic knowledge to evaluate positive and negative levels of leadership exchange. Both concepts can be studied and investigated through textbooks and general organizational behavior courses.

Case Summary This case is based on real life experiences and interactions of an actual grounds crew. The field manager leads a crew of two others to achieve a field that looks great and enables great play. However, the success of the management involves the interplay between the different diversity issues seen in each character including race, gender, education, and technical expertise. These differences have the potential to lead to conflicts, both good and bad. Lonnie must minimize negative conflict and enable his team to perform at elite levels. As in many organizations, diversity management is a central influence to productivity and decision making (Simons et al., 1999). As the case begins, Lonnie hired Christy, who has an appreciable turf management background and compliments Lonnie’s experience. The two engage in substantive conflict on a number of topics, which, in the end, adds to their productivity. Their differing perspectives allow for the best decisions to be made, thus resulting in the highest quality outcomes. However, the conflict in the case between Elberto and Christy is different. Rather than stemming from job related diversity, the conflict between Elberto and Christy is a function of demographic surface level diversity, which Pelled (1996) describes as affective conflict. Next, the case highlights the different types of relationships that employees can share with a supervisor. In this case, students analyze the various levels of LMX between Elberto, Christy and Lonnie and the effects that result from each. Elberto has a low quality LMX relationship. He never participates in team activities outside the workplace, and he does the very minimum in order to accomplish his tasks. This results in a lack of trust and a very stressful relationship with Lonnie. Christy is just the opposite. She has a relatively high quality LMX relationship with Lonnie that helps her to love her job and give 100% to the work teams’ ultimate cause of an amazing baseball field. She is able to help and support Lonnie who provides her with a positive and mutually beneficial reciprocal exchange relationship. By the end of the case, the two became very good friends. Interestingly, despite popular opinion, this type of work relationship is not always a good thing. In fact, there is the potential that this type of high quality LMX relationship can lead to negative outcomes. Lonnie expects more out of Christy, for example, and in turn she puts pressure on herself to meet and even exceed Lonnie’s expectations. This added pressure puts more stress on Christy, especially if she is completing others’ work and not getting extra compensation or recognition. As a consequence, there is the potential for Christy to lose some of the zeal and passion she has for the job (Harris & Kacmar, 2006).

Key Issues Demographic diversity. Over the past decade demographic diversity has become an increasingly important issue as companies desire to be more inclusive in their recruiting. The term demographic diversity refers to the degree to which

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a unit (e.g., a work group or organization) is heterogeneous with respect to demographic attributes. Attributes classified as demographics generally include age, gender, race, group tenure, organization tenure, education, or functional background (Pelled, 1996). In her model, Pelled outlines the case where conflict in organizations can be both destructive to performance and constructive. When constructive, conflict is usually substantive in nature and often develops from demographic diversity due to job relatedness (seen in the case study between Lonnie and Christy regarding the turf replacement). However, when destructive, conflict is usually affective and develops from non-job related or surface level demographic diversity (seen in the case between Elberto and Christy). It is known through experience and empirical data that demographic diversity causes conflict among employees. This can lead to decreased career satisfaction and increased turnover intentions among sport personnel such as athletic coaches (Cunningham & Sagas, 2004a). Nevertheless, conflict among members of a work team should not always be smothered. At times, conflict should actually be promoted. Indeed, diverse groups frequently require a period of time to adjust to the negative process consequences of diversity; however, once these have been overcome and an appropriate level of comfort has been reached (among group members), diversity can result in variety positive organizational outcomes (Watson, Kumar, & Michaelsen, 1993). Demographic diversity scholars have frequently implied that conflict plays a central role in the relationship between diversity and work group outcomes. The findings suggest that different types of diversity have distinct relationships with task and emotional conflict because of the specific properties of each type of diversity. Overall, these results offer researchers a clearer view of the “black box” between work group diversity and performance (Pelled et al., 1999). Leader-member exchange (LMX). In all organizations, supervisors and subordinates form bonds and relationships with each other. LMX theory involves the expansion of dyadic relationships between managers and their employees. Not all employees are treated equally. This view of the work unit suggests that the unit becomes differentiated, based on leader-member dyads, into dyads with low quality LMX relations and dyads that have higher quality exchanges. These relationships can be associated with advantages and disadvantages accordingly. As employees reap benefits from higher quality relationships, the managers look for the employees to go beyond the scope of their specific job duties. Subordinates in high-quality LMX relationships receive several advantages, including favors, rewards, and increased communication with their supervisors (Harris & Kacmar, 2006). Subordinates in low-quality LMX relationships do not enjoy the same levels of trust or emotional support and are not awarded the same privileges. Not only have these aspects been shown to be associated with dyadic levels of LMX, varying degrees of stress also have been linked to dyadic levels. Previous research has led to the expectation that the greater the LMX relationship, the less stress that is placed on an employee. However, according to Harris and Kacmar (2006), the correlation between the relationship level and stress is actually a U-shape, or curvilinear. Thus, as LMX relationship quality increases to higher levels, the subordinates are likely to have greater expectations, obligations, and roles to fulfill beyond the formal job description. If the relationship is curvilinear, the point of inflection corresponds to the point in the graph where stress begins to increase. In essence, this point reflects the boundary for positive stress outcomes of high-quality LMX relationships. So is it necessarily a good thing to look to reap all the benefits that accompany high-quality relationships? The answer is no. As the quality of an LMX relationship increases, advantages certainly accrue for employees, however, there comes a point where the employee can develop a heightened level of stress because of the extra pressure of performing for the supervisor. An example of this in the current case study is Christy and how, by the end of the case, she felt overwhelmed and underappreciated. Stress is an important outcome for researchers to examine when considering individuals because it can lead to depression, frustration, anxiety, and a number of physical problems, including cardiovascular disease and high blood pressure. Stress also has been a problem for organizations, with researchers estimating that workplace stress costs U.S. employers more than $200 billion annually (Harris & Kacmar, 2006). If organizations can approach the “inflection point” they can attain key benefits for their employees. In turn, employees can reap the benefits of low stress levels, which will most likely increase job satisfaction. Additionally, to ensure that adverse outcomes do not result, organizations should inform supervisors and managers during training sessions of the potentially negative results of giving too much attention (and having expectations that are too high) to only a few subordinates.

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Theoretical Linkage Applying demographic diversity to the case. In this case, the grounds crew for a University is heterogeneously diverse. The case contains elements of job-related and non job- related diversity, each of which led to various types of conflict among the team. Following Pelled’s (1996) typology, the variables of age, gender, education, experience, and race are presented as high visible demographic diversity issues that are low in job-relatedness. For instance, Elberto’s inexperience with female coworkers led to many conflicts which whic were affective in nature (see Pelled model) and detracted from group performance. Lonnie’s job, as the leader of the team, is to minimize affective conflicts due to the negative impacts they may have on organizational productivity. But, in keeping with Pelled’s model, not all conflicts have negative results. Lonnie and Christy have completely different backgrounds with sports turf. These differences lead to significant debates; yet, in the end, a better product resulted from their discussions. Lonnie developed his knowledge based solely on his experiences of taking care of fields as a head coach. Christy, on the other hand, graduated with a master’s degree in sports turf management. When choosing a method to repair some damaged spots on the turf just before opening day, Christy and Lonnie differed in their view of the solution. The two experienced a conflict based on the individual method of choice due to their background and job-related experiences. Christy and Lonnie debated, each avoiding personal attacks and using possible arguments to defend their preferred method. Their diverse background from a job-relatedness perspective led to an increase in the quality of the decision making process. The substantive conflict was positive and helped the team produce a higher quality product. They were able to make a choice that weighed all possible solutions. Without this demographic diversity, especially as it pertains to education and experience, the best method may not have been achieved. This case demonstrated the two dimensions of demographic diversity presented by Pelled (1996): visible and jobrelated diversity. Education, organizational tenure, and functional background were job-related differences with low visibility (cannot be easily seen) whereas age, gender, and race were low in job-relatedness but high in visibility. These respective differences caused conflicts between Lonnie, Christy, and Elberto. The substantive conflict between Lonnie and Christy had a positive impact, thus, similar conflicts and differences should be promoted in all sport organizations. The affective conflict was based on emotions which stemmed from the highly visible diversity variables. These diversity variables were unrelated to the job and led to decreased cohesiveness between Christy and Elberto. The multiple arguments between Christy and Elberto negatively impacted team unity, distracted other team members from their tasks, and did not benefit the intercollegiate sport organization. As a whole, a supervisor such as Lonnie should work with great diligence to optimize job-related conflicts and reduce the amount of affective conflict. Applying leader-member exchange (LMX) to the case. In the case, Lonnie experienced several different types of relationships with his employees. One way in which supervisors can develop relationships with their employees is by providing extra attention and work support. Once formed, these bonds can be either beneficial or detrimental to the employees based on the level of LMX. The case presented in the baseball narrative involved a relationship that was high in LMX and one that was low. The first supervisor-subordinate relationship of interest is the one between Lonnie and Elberto. Here, these two individual’s personalities do not mix well, and Elberto does not exert himself in team activities outside of work. Indeed, Elberto seemingly isolates himself and is unable to bond with his supervisor. Elberto also is quick to do only what is necessary and avoid additional tasks. This results in Lonnie losing trust and respect for Elberto. Furthermore, Lonnie must continually check and micromanage Elberto. As a result, Lonnie becomes irritated and Elberto repeatedly feels micromanaged because his boss is continually looking over his shoulder. On the end of the LMX spectrum, Lonnie and Christy immediately bonded and became good friends. The two shared similar interests and often took their discussions with them at their daily lunch outings. In return, Christy benefits from Lonnie having a strong sense of trust in her abilities to do a quality job. Lonnie validates his trust in Christy by putting his career on the line and agreeing to her approach to dealing with the turf problem. Because there was no room for error, this decision by Lonnie was especially meaningful to Christy. As a result, she went far beyond the call of duty to make sure the job was completed at the highest quality. Both employees benefit from their LMX relationship. Christy has the added benefit of avoiding being micromanaged. Lonnie has the benefit of knowing Christy will do whatever is necessary to get the job done and done correctly.

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Interestingly, this is the moment in the case that reflects the inflection point of the curvilinear relationship between stress and LMX. In other words, what happens if their LMX relationship increases further, does Christy’s stress decrease? In this case, Christy and Lonnie become extremely high in LMX. They discuss personal issues and family issues outside of work and bond as friends. This relationship has the consequences of higher expectations for Christy, as she is expected to perform tasks outside her job description. She is expected to perform at a higher level of excellence than all other team members. For example, at one point in the case Lonnie asked Christy to pick up trash outside the stadium which was outside of her job description; however, she jumps willingly into the task. She does this for two reasons: Lonnie asked her and the LMX relationship is very important to her. Eventually, the added expectations from Lonnie increases Christy’s stress levels. At first, the extra-roles do not bother Christy, but by the end of the case, the higher expectations definitely had a negative impact on Christy. Thus, the connection between low- and high-levels of LMX and employee levels of stress are evident throughout this case.

Discussion Questions and Suggested Responses Questions Relating to Demographic Diversity 1. From Figure 1 in Pelled (1996), describe the types of demographic diversity variables that exist in the case between Christy and Elberto? Christy and Elberto encounter visible diversity that is low in job relatedness. Both Elberto and Christy have an awareness of visible differences between them with entice emotional responses. 2. What aspect(s) of diversity occurs between Christy and Lonnie? The two characters have job-related differences. Lonnie, although he has significant experience in the field of sports turf, lacks detailed knowledge of the science behind sports turf. Christy’s background complements Lonnie with her extensive knowledge of sports turf. When the two debate, they challenge each other based on experiences and knowledge related to the topic. 3. Explain how Pelled’s model of diversity is represented in this case. First, the characters engage in two types of demographic diversity as described previously. The relationship between Elberto and Christy contains visible diversity which results in the stirring of emotional feeling. The fighting between these two characters is affective conflict, which can only hinder the tasks. Team performance suffers as a result of the conflict between Christy and Elberto. In contrast, Lonnie and Christy have non-visible or job related differences between each other. The substantive conflict that arises promotes better decision making and outcomes. 4. Is there anything Lonnie could have done to help any diversity issues mentioned in this case? As a manager with multiple employees with different demographic characteristics, Lonnie could have been more aware of the conflict within his staff, especially as it pertained to demographic diversity issues. He could create opportunities for the staff to become more acquainted with each other outside of work. He could develop team building exercises that emphasize common interests and values and encourage positive social interactions. He could create opportunities for his staff to share commonalities in beliefs, experiences, even tastes (food, music, movies etc..). In doing so, employees with different backgrounds, such as Christy and Elberto, may come to realize they are not so different.

Questions Relating to Leader-Member Exchange (LMX) in This Case 1. Describe the leader-member exchange relationship between Elberto and Lonnie and the relationship between Lonnie and Christy. The relationship between Elberto and Lonnie is a low quality LMX relationship. The two characters never bond more than Lonnie being the supervisor and Elberto being the subordinate. Lonnie even makes offers to Elberto for him to join the team at functions outside of work. However, Elberto always seems to refuse, keeping the relationship

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at the lowest end. As a result, Lonnie never gains trust in Elberto, and he seems to always double check his work which decreases his job satisfaction. On the other hand, Lonnie and Christy have a great working relationship that matures into a strong friendship. Lonnie and Christy had frequent lunch meetings and were able to discuss topics outside the scope of work. In turn, Lonnie began to trust Christy more. In fact, Lonnie began to trust to the level a person would trust a friend. The trust carried over to work which enabled Christy to tackle projects she wanted to accomplish. With the increased support from her boss, Christy would often do things at work that were not required (e.g, pick up trash at the stadium) but over time, their LMX relationship strengthened which resulted in more work for Christy. Although the friendship was growing, the added stress over her job began to increase and this would eventually have a negative impact on Christy’s job performance. 2. What advice would you give Elberto as his friend? Elberto should think about how his work attitudes affect his long term stability in his current position. When opportunities arise for him to “socialize” with coworkers, he should take note if he desires to maximize his responsibility in the organization. Also, Elberto should learn to appreciate differences in the perspectives and backgrounds of his colleagues. 3. Explain the curvilinear relationship between stress and level of LMX in the case. In opposition to the commonly held notion, stress does not continually decrease linearly as LMX increases. There is a point where stress begins to rise again when LMX gets too high. In the present case, Lonnie trusts Christy so much that he assigns her an increasing amount of tasks. Added tasks cause her added stress on the job. If Lonnie had kept the relationship at the level in the middle of the case, the two characters would have had the best of both worlds (in terms of stress levels and work unit outcomes). The level was situated at the inflection point. 4. Is there anything Lonnie could have done differently with Elberto as an employee? Lonnie could have made a more concerted effort to get to know Elberto. By engaging Elberto in conversation and finding out what motivates him, Lonnie might have been able to make him a happier and more productive team member. For example, it appears that Elberto is not pursuing sports turf management as a career. As a result, he might be motivated by a flexible work schedule, more time off, and positive reinforcement even for small tasks. By determining what exactly motivates Elberto, Lonnie could make efforts to help increase the rewards that Elberto values and keep him motivated to do his job in the process.

References Cunningham, G.B. (2007). Opening the black box: The influence of perceived diversity and a common in-group identity in diverse groups. Journal of Sport Management, 21, 58-78. Cunningham, G.B., & Sagas, M. (2004a). Racial differences in occupational turnover intent among NCAA Division IA assistant football coaches. Sociology of Sport Journal, 21, 84-92. Cunningham, G.B., & Sagas, M. (2004b). Group diversity, occupational commitment, and occupational turnover intentions among NCAA Division IA football coaching staffs. Journal of Sport Management, 18, 236-254. Cunningham, G.B., & Sagas, M. (2004c). People make the difference: The influence of human capital and diversity on team performance. European Sport Management Quarterly, 4, 3-22. DeHass, D. (2004). 2003-04 race demographics of NCAA member institutions’ athletic personnel. Indianapolis, IN: The National Collegiate Athletic Association. Graen, G.B., & Uhl-Bien, M. 1995. Relationship-based approach to leadership: Development of leader member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective. Leadership Quarterly, 6, 219–247. Harris, K.J., & Kacmar, K.M. (2006). Too much of a good thing: The curvilinear effect of leader-member exchange on stress. The Journal of Social Psychology, 146(1), 65-84. Liden, R.C., Wayne, S.J., & Stilwell, D. (1993). A longitudinal study on the early development of leader-member exchanges. Journal of Applied Psychology, 78(4), 662-674. Pelled, L.H. (1996). Demographic diversity, conflict, and work group outcomes: An intervening process theory. Organization Science, 7(6), 615-631.

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Pelled, L.H., Eisenhardt, K. M., & Xin, K. R. (1999). Exploring the black box: An analysis of work group diversity, conflict, and performance. Administrative Science Quarterly, 44(1), 1-28. Pfeffer, J. (1983). Organizational demography. In B. Staw and L. Cummings (Eds.). Research in organizational behavior (Vol. 5, pp. 299-357). Greenwich, CT: JAI Press. Scandura, T.A., & Graen, G.B. (1984). Moderating effects of initial leader-member exchange status on the effects of a leadership intervention. Journal of Applied Psychology, 69(3), 428-436. Simons, T., Pelled, L.H., & Smith, K.A. (1999). Making use of difference: Diversity, debate, and decision comprehensiveness in top management teams. Academy of Management Journal, 42(6), 662-673. Watson, W., Kumar, K., & Michaelsen, L. (1993). Cultural diversity’s impact on interact process and performance: Comparing homogenous and diverse task groups. Academy of Management Journal, 36, 590-602. Williams, K.Y., & O’Reilly III, C.A. (1998). Demography and diversity in organizations: A review of 40 years of research. Research in Organizational Behavior, 20, 77-140.

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