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Case Study Analysis Dwayne StoweWebster University
Case Study AnalysisThe economic condition of the Oakland A’s after 1995 played an extremely important role in shaping the organization’s compensation, staffing, training, and development strategies. It is important to note the performance and financial climate of Major League Baseball at that time, and the way a “small market” team like Oakland attempted to adapt. As the article Billy Beane: Changing the Gamepoints out, from 1995-2001 baseball organizations in major markets like New York and Atlanta dominated the game. They were able to absorb the highest payrolls and form a product that consistently remained competitive. Although they had success in the 1970’s and late 1980’s, the Oakland A’s struggled to compete once their liberal-spending owner- Walter Haas, Jr.- passed away and the team was sold to new,more frugal, owners. As a result, the A’s had to decide between mediocrity or innovation. Leaning on mathematicians and statisticians, the organization found success in an unorthodox system of analyzing and recruiting talent spearheaded by Billy Beane: Sabermetrics Sabermetrics challenged baseball’s traditional way of investing in a player and scouting for new talent. In doing so, it ushered in new strategies that focused onbelow-market contracts and undervalued players based on a series of mathematical equations. In order to successfully implement the theory of sabermetrics, management and employees had to be on the same page and they needed to work together to implement this approach. As evident by the initial struggles and internalbacklash by members of the Oakland A’s, once sabermetrics was introduced a
cohesive union was essential when formulating new ideals and systems into the workplace. This is similar to the video, Labor’s Comeback: Insourcing Work at Northwest Airlineswhich outlined the evolved relationship between ownership at Northwest Airlines and its union. In the video, the audience is shown how management and the union it negotiates with, both made concession and formed a partnership in order to make the airline better and to keep jobs from being outsourced to other countries. Key in that relationship is the willingness of both parties to share information and communicate all issues for the betterment of the company.