Question
The Warriors
The Warriors are a soccer* club who perform well but have not won any trophies. Recently, The Warriors have had above average turnover of managers, increasing time spent on recruitment. Player turnover has also been higher than that of other clubs.
Dave Atkinson, owner and former player, is an autocratic leader who denies blame for the high manager and player turnover. He publicly criticizes players. However, fans adore Dave. He was a successful player, supports the fans and is committed to corporate social responsibility (CSR). He has:
reduced ticket prices to the lowest in the league
provided free, healthy snacks for junior supporters
donated 20 % of The Warriors’ profits to local schools to encourage young people to play sport.
After a recent poor performance, Dave demanded that all players donate 50 % of their pay for that match to good causes. Two new players used social media to complain. In response, Dave threatened to cancel their contracts. The other players refused to turn up for training to show solidarity. Dave then locked the players out of the stadium.
This controversy comes at a critical time for The Warriors. With a dynamic new manager, they have their first chance to win an important final and with it significant financial gain, which is needed to support corporate social responsibility (CSR) and upgrade spectator facilities. On social media, the fans have asked Dave not to enforce the lock-out.
Dave wants to resolve the conflict and privately regrets the lock-out. He is angry with the team but wants to increase The Warriors’ corporate social responsibility (CSR). Without wishing to appear as a weak leader, he asked another popular former player for advice.
* soccer: football
a.Outline two features of autocratic leadership.[2]
b.Explain one cost and one benefit of a high labour turnover of managers for The Warriors.[4]
c.Explain one cost and one benefit to The Warriors of committing to corporate social responsibility (CSR).[4]
d. Discuss two methods to resolve conflict for The Warriors other than a lock-out.[10]
▶️Answer/Explanation
Ans:
a.Decision making is carried out by an individual or select few individuals.
Communication tends to be one way only- top down.
Organization is characterized by a role culture.
Any other suitable feature outlined
Award [1] for each feature identified.
b.
Costs of a high turnover of managers include increased recruitment costs and a management system that may be confusing for the subordinates to follow if managers keep changing. This may have further motivational issues, as the work force may be unsettled and impact on the players’ performance.
From the stimulus, there is evidence that The Warriors recruitment costs are higher than desirable given the time spent looking for new managers. More costs will result in less funds being available to support The Warriors corporate social responsibility practices and risk Dave’s achievement- see bullet points in stimulus.
Player turnover has also been high, which may impact on teamwork on and off the pitch and reduces The Warriors chances for commercial success. There is also evidence in the stimulus that two new players who presumably have not gelled yet with the team, or The Warriors culture, are unhappy and complained on social media. This is bad publicity for The Warriors.
The benefits are that poorly performing managers are not allowed to make things worse for the club. Underperforming managers can be moved on and fresh thinking and ideas can be introduced. Dave who is actually very popular with the fans, will probably enjoy even further support from the fans if he removes underperforming managers or players quickly. The Warriors have not yet won a trophy and the appointment of a dynamic new manager has put them on the verge of winning a final for the first time.
Accept any other relevant benefit/cost.
While managers are technically employees, It is expected that the candidates apply the advantages/ disadvantages to the roles/ behaviour of the managers and/or possible impact on the players due to the changes in management.
Mark as 2 + 2.
For an identification or a description of one benefit/cost with or without application [1].
For explanation of one benefit/cost with no application [1].
For explanation of one benefit/cost and application [2].
Application must refer to the high turnover of managers for The Warriors.
c.
The costs to The Warriors of committing to CSR involve the opportunity costs. Reduced ticket prices and healthy snacks, etc, divert funds when the funds could be used to purchase improved players, hire more experienced managers or improve spectator facilities. CSR improves the image of the team off the pitch in the eyes of the stakeholders, but perhaps greater consideration should be given to what is happening on it.
The benefits of the commitment to CSR include brand development and loyalty through the eyes of its junior supporter group – an important group of longer-term stakeholders – that are willing to come and watch the games despite lack of success which ensures some financial sustainability of the club at a time when they are still waiting to win their first trophy.
The benefits/costs should refer/ apply to The Warriors and not to different stakeholders.
The impact on different stakeholders may be used as long as the final costs/ benefits refer to The Warriors.
Accept any other relevant cost and benefit.
Mark as 2 + 2.
For an identification or a description of one benefit/cost with or without application [1].
For explanation of one benefit/cost with no application [1].
For explanation of one benefit/cost and application [2].
Application must refer to The Warriors committing to CSR.
d.
Refer to Paper 2 markbands for 2016 forward, available under the “Your tests” tab > supplemental materials.
The question asks candidates to examine the stimulus and make reasoned judgements to suggest appropriate methods to resolve the conflict for The Warriors.
Candidates are expected to be familiar with:
Conciliation and Arbitration
Employee participation in industrial democracy
No strike agreements
Single union agreement
Given the stimulus, it could be argued that with an important final coming up and The Warriors being on the verge of winning their first trophy and given the lock-out, Dave is highly likely to push for non- strike agreement as any action such as strike action is likely to result in an irreversible negative impact and can easily be used by the players to send a message to Dave : they are serious about Dave’s actions but do not wish to jeopardize being in the final. The players have clearly had enough of Dave’s autocratic style and wish to see a change.
Dave and the fans are likely to be very worried as short term strike action is possible and could send a very serious message to stakeholders that the players’ dissatisfaction is real.
However, the players are unlikely to agree without some form of compromise from Dave and the realization that a strike or not regularly training can reduce the chance of success. Also, loss of earnings, fear of management response etc might facilitiate some conflict resolution.
Other methods could include conciliation and arbitration, where Dave will ask for an independent adjudicator to rule on the lock-out and other issues and bring both sides together. This, however, will take time and is a medium term solution and the final is approaching. Costs of organizing this could impact on The Warriors’ CSR.
Dave’s habit of impulsive behaviour towards his managers and staff indicate that he would not be able to see the value in this solution. Given the stimulus, this may be difficult, especially if the arbitrator rules against Dave’s decision and the decision is binding. The players might support this method but need to ensure that they are able to represent their case or have a representative.
Candidates can use conciliation and arbitration as two different methods provided that there is a clear explanation of the differences.
Industrial democracy
Dave could seek to modify his management style and allow greater employee participation and publicly promise not to be so harsh on players. There is evidence that he is willing to consult with a former player to sort out the lock-out. But we must ask the question of, given Dave’s autocratic style, how likely this modification would be given Dave’s track record. Dave’s management style has to change to be more democratic which might be challenging for him but acceptable for the players.
Dave is clearly a leader with a vision to do the right thing by his community. The conflict is affecting him, as he has admitted in private. He risks undoing some of the CSR that has put him in a favourable position with the supporters and in the absence of any trophy wins, he cannot afford to do this. It would seem that it would be in the best interests of the club and the fans to solve this conflict quickly. Dave will have to change his leadership style and allow greater employee participation. However, this could all change if The Warriors win this for the first time.
Students may also evaluate the single union agreement
A conclusion with judgment is expected.
The candidates should refer to methods of conflict resolution not actions/industrial relation that can be taken.
Please note that in the question, an example of industrial relation was given- a lock out hence some candidates may follow with other examples.
Candidates that refer only to industrial employee relations and not to methods of conflict resolution cannot reach the top mark bands – see below.
A balanced response is one that covers at least one argument for and at least one argument against each option.
Marks should be allocated according to the paper 2 markbands for May 2016 forward with further guidance below.
For one relevant issue that is one-sided, award up to [3]. For more than one relevant issue that is one-sided, award up to a maximum of [4].
For one relevant issue/ method that is balanced with sufficient depth award up to [5]
Accept methods/suggestions that are related to industrial democracy without naming the methods like- change leadership style, consultation/ discussion.
If the candidates provided just examples of industrial relations and not conflict resolution, but the methods are well covered/ evaluated award up to [6]
Award a maximum of [6] if the answer is of a standard that shows balanced analysis and understanding throughout the response with reference to the stimulus material but there is no judgment/conclusion.
Candidates cannot reach the [7–8] markband if they give judgment/conclusions that are not based on analysis/explanation already given in their answer.
Candidates cannot reach the top marks if there is no relevant reference/application to The Warriors.