Comparative Analysis between the Sports Management Systems in Romania and Norway

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1 DOI /vjes Comparative Analysis between the Sports Management Systems in Romania and Norway Ciprian Gheorghe POPESCU University Valahia of Targoviste, Romania Abstract Through this analysis I wanted to emphasize the differences but also the similarities between the two countries with different management systems, in terms of geopolitical, social, technological and economic. In this analysis we found that the two systems have common point in sports management, but also points that they should priority in the next stage in the development of sport. Keywords: sports management, comparative analysis, strategic management, Norway sport system, Romanian sport system, education JEL Classification: O57 Introduction This article makes a comparison between the Romanian and the Norwegian sports management system. The Romanian sports system consists of two main bodies with responsibilities in the development and promotion of sport: Ministry of Youth and Sports and the Romanian Olympic Committee. In the case of Norway there is a single large organization namely the Norwegian Confederation of Sports (NIF) where the Olympic and Paralympic Committee does not operate as a single unit but under the control of the Norwegian Confederation of Sports. Statistical data of the two countries Table 1. Comparative statistical data between Romania and Norway Population 19,348,997 inhabitants 5,281,739 inhabitants (at August 30, 2016) - from which urban population 60.30% (11,779,449 inhabitants in 2016) 79.4 % (4,194,679 inhabitants in 2016) Population density 84 inh. / km 2 14 inh. / km 2 Surface of the country 238,391 km 2 366,108 km 2 91

2 Average age 42.5 years 39.2 years - transition temperate and continental - three main types of climate: Climate with four distinct seasons temperate, continental cold Average annual maximum temperatures in summer Average annual maximum temperatures in winter 92 - between 22 C and 24 C - between -3 C and -5 C (Source: Adapted from statistical data provided by World Meters) and polar - between 14 C and 16 C in the southern region of the country; - between 8 C 10 C in the northern region of the country, - between -4 C and -2 C in the mountains - between 2 C and 0 C in the southern region; - between -20 C and -16 C in the northern region In the table 1, we can see the differences between these two countries, both in terms of demographic, climatic, and the country's surface. Although it is a country with an area wider than that of Romania, Norway has a number of inhabitants about 4 times smaller than Romania's population due to unfavorable climate. Romanian sport system The Body responsible for sports system in Romania is called the Ministry of Youth and Sports. This organization was founded in late 2008, after suffering changes of name and organization and keeps its current starting from January 19, 2013after the publication in the Official Monitor. Currently, the Ministry of Youth and Sports is made up of five officials and two senior civil servants: Minister, two state secretaries on various events of sports and youth activities, two undersecretaries of state on sports and youth activities, a general secretary and deputy general secretary. Norway sport system Year 1861 is also considered the year of commencement of the Norwegian sports thanks to the foundation of the national sports organization under the name Central Federation today known as the Norwegian Confederation of Sports - (NIF). Norwegian sport is coordinated and organized by the (NIF) Norwegian Confederation of Sports and the Olympic and Paralympic Committee. In Norway, unlike Romania, the Olympic Committee does not function as single unit but is subordinated to the Norwegian Confederation of Sports. Currently the Norwegian Confederation of Sports (NIF) is headed by a president, two vice presidents, nine members of the committee and a representative of the employees they being voted every 4 years. In the table 2, notice the difference in the budget allocated to sport in both countries, but keep in mind that the average wages in the economy differs greatly between these two countries (according to data provided in the report of Eurostat in 2014, approx.

3 469 euros net in Romania, about 3430 euros net in Norway), as well as the consumer price index which in Norway is higher than in Romania. Although Norway has a population relatively small compared to that of Romania, is found that nearly half of the population practice sport, and the number of associations and clubs as against Romania is double. Table 2. Comparative statistical data between Romania and Norway Budget 33,000,000 euro/ ,000,000 euro/2015 No of sports federations Related sections 7,314 11,409 Registered athletes 243,375 2,240,143 (Source: Adapted from statistical data provided by the Ministry of Youth and Sports from Romania and the Norwegian Confederation of Sports (NIF)) Romanian Olympic and Sports Committee On June 23 rd, 1894 was created the International Olympic Committee (IOC) and 20 years later, in 1914, was founded the Romanian Olympic Committee. The Romanian Olympic and Sports Committee cooperates with the Ministry of Youth and Sports and also with other government bodies and public or private organizations. The objectives of the strategy that Romanian Olympic and Sports Committee has thought for the period relates to promoting the status of a professional athlete for all sports, initiating programs to attract volunteers in sport, supporting coaches and specialists by offering scholarships and educational programs, attracting grants and supporting the competitive position of Romania in the context of increasing competition in sporting competitions. As a form of recognition of Romanian sport performance is to provide life annuities. This form of recognition of merits, introduced in 2000 for social reasons, after the media reported several cases of great Romanian champions who were living at subsistence, is a management action of the Ministry to find a form of social protection for athletes after retirement. Professional athletes have rights to social insurance, social assistance, social health insurance and also rights due to them from private pension funds; under the Romanian law, the athlete who won a gold, silver or bronze medal in individual events or teams in the Olympics or a gold medal at the senior world and European championships - Olympic events has right to an annuity. The amount of the life annuity is equivalent to 1.5 average gross wages in the economy and is calculated according to the level of sports performance. The major objectives of management strategy that the Norwegian Confederation of Sports has thought for the next 4 years refers to ensuring all children, youth and adults to practice sport activities and increasing their numbers, both in the local environment, in schools and at work wanting to stimulate all employees to practice regular physical activities as well as integrating in sports life the people with disabilities. The objectives are directed to directions of development of knowledge and expertise, development of the field of research and innovation, international involvement, recognizing the value of voluntary 93

4 work, strengthening the financing of local and national sports by cooperating with the business sector and environmental responsibility. The Norwegian sports system is trying to increase the percentage of the immigrant population to participate in organized sports. However the strategic development objectives, the latest studies conducted by the European Union show that 60% of the population in Romania does not practice at all sport activities, putting us on the last places along with Bulgaria, Malta and Portugal, unlike the Nordic countries, which ranked on top with most practitioners of sports. The financing of sporting activities in the Romanian system The importance of financing the sports infrastructure is essential in achieving international success. The sport activity can easily be used as local, regional and national development tool. In this regard, it is required an appropriate financial support. Sports activities in the Romanian system have the source of funding grants from the state budget, sponsorships, contributions of the Autonomous Administration National Lottery, donations and contributions in cash or in kind (from individuals and companies), own revenues realized by selling the Olympic emblem, the insignia and Olympic stamp, from domestic and international actions, and other economic activities, carried out according to law. Currently there are 12 sports with priority in the distribution of financial funds: gymnastics, rowing, canoeing, judo, athletics, fencing, weightlifting, handball, polo, wrestling, swimming and modern pentathlon, table tennis, this prioritization being influenced by results obtained every year by the athletes legitimated at major international competitions. The financing of sporting activities in the Norwegian system Sports activities in the Norwegian system have the source of funding grants from the state budget, substantial contributions of National Lottery (is desired to increase the rate of funding sports activities from the National Lottery contributions from 45.5% to 64%), funds from the Ministry of Health, funds from the Department of Culture, sponsorships, and have as facilities deduction of VAT on goods and services purchased by the Committee, including goods and services for the construction of sports facilities. Comparative results between the two countries at the Olympics Romania participates in 1924 for the first time at the 8 th edition of the Olympic Games in Paris, where it won its first Medal, taking third place at rugby, also being the remaining Medal awarded to the Olympics on this discipline. Starting with that year, Romania has participated in all editions of the modern Olympic Games, except the third editions of 1932, 1948 and Norway first participated at the summer Olympic Games in 1900, and has sent athletes to compete in every Game since then, except the Olympics in 1904 and the Summer Olympic Games from 1980 in Moscow when they participated in the Americanled boycott. 94

5 Country No. of games attended Table 3. Total number of medals won at the Olympics including the Summer 2016 Olympic Games in Rio Summer Games Winter Games Combined Total No. No. of of Total Total Total games games attended attended Norway Romania (Source: Adapted from statistical data provided by International Olympic Committee) From the table above (table 3) we see that Norway has focused on winter sports due to climate and geographical position that favors the development of winter sports, as against Romania which was focused more on the summer games. SWOT and PEST analysis SWOT analysis represents a method of evaluation of an organization. This strategic tool helps the evaluator to focus on the most relevant elements for the work of the organization. The dynamics of the need for analysis, evaluation, adaptation, transformation and periodic change of the organization is also significantly increased by the turbulence of current reality. This implies a permanent adaptation of the values and the specific rules for the operation of the organization and requires any new skills in the assessment of the status and the potential of evolution of each of the structures. Therefore, the ongoing assessment of the structural state (of the organization) and its potential of evolution is necessary from three perspectives, respectively, the conceptual, structural and actional-functional perspective. To analyze the two management systems, and for a clearer vision on resources, but also on the existing limits on the level of both the Norwegian and Romanian mass and high performance sports, we will conduct a review with the help of SWOT analysis (SWOT represents the acronym for the English words: Strengths, Weaknesses, Opportunities and Threats ) and PEST analysis (Political Economic Social Technology). SWOT analysis is the most important managerial technique used to understand a company s or an organization s strategic position. SWOT analysis is a method commonly used whereas provides a comprehensive and detailed overview. PEST analysis complements the first and captures various political, economic, social and technological factors. Political Strengths - involvement of professional athletes in - sports organizations are not the political life politically involved - representation of the country in the world - special involvement of local by professional athletes (Romanian sport authorities in the promotion and ambassadors) development of sport - membership of the European Union, - political stability which allows the adoption of global - regular development strategies policy strategies for improving mass - selection of personnel working in 95

6 Weaknesses 96 sports - sports system (both performance and mass) runs after an antiquated mentality - reduced involvement of local authorities in the promotion and development of sport - obsolete and misinterpreted laws - poor communication between sports clubs, federations and the Minister - effects like politicization of public employment positions after every election on the grounds of political affiliation Opportunities - involving professional athletes in political life by helping taking political decisions fairly and in accordance with the surrounding reality - involvement of professional athletes in various projects Threats Economic Strengths Weaknesses - changes in the political system having an impact on sports - duration of political term - frequent changes of legislation - political instability at national and international level - various political interests - internal market lobby/pressure groups - looking sports like business - wars and conflicts - breaking the law, bureaucracy and corruption - attracting grants in the field of sport and sports activity - organization of sporting events where among sources of funding to be included private companies or NGOs - own revenues achieved by selling the Olympic emblem, insignia and Olympic stamp - attracting a cash flow by organizing international competitions in our country - insufficient or misdirected funding - low rate of absorption of grants; - bureaucracy - directing a very small percentage of the GDP to sport activities - cumbersome access to grants the sports field on the criteria of competence and professionalism, not based on political affiliation - existence of obsolete laws that do not help attract sponsors and the emergence of private clubs - government policies favouring the practice of mass and performance sports - good state funding - various political interests - internal market lobby/pressure groups - changing government policies - political tensions - wars and conflicts - maintaining a solid and long-term economic base of sporting activities; - strengthening local and national sports funding through cooperation with the business sector - settlement of all expenditures of athletes by the Federation - a competitive economy profoundly influences how money from the state budget is spent - priority sports in distributing financial funds - athletes are not financially motivated depending on their performances - granting financial funds for

7 Opportunities Threats Social Strengths - meeting the financial problems of the families from which athletes are coming - under-funding the sports pyramid base that caused a poor promotion of athletes to higher levels of performance; - unmotivating field due to financial problems the system is facing, many specialists migrate to foreign, financial developed countries - sports priority in the distribution of financial funds - various types of costs incurred by the athletes or their families - European Union financing programs for mass sport; - granting scholarships and promoting education systems of training programs type in centres of excellence at international level, in the field of sport - social reconversion programs for professional athletes at their retirement from the sport career; - recognition of athletic performance by providing life annuities - international economic conjuncture - situation of the national economy - increasing disinterest towards the funding of sport and physical activities - financial problems the Romanian system is facing - macroeconomic developments - global inflationary pressures - high unemployment rate - recession summer sports in order to be developed - motivating field - emigration of sports specialists from different countries - high level of national economy - financing sources - international economic conjuncture - global inflationary pressures - macroeconomic developments - the opportunity given by sports in - the opportunity given by sports in integrating individuals into society integrating individuals into society - the opportunity given by sportsin - the opportunity given by sports in improving the physical and mental improving the physical and mental health and reducing the anti-social health and reducing the anti-social behaviour behaviour - developing a sense of organization and - developing a sense of organization discipline and discipline - developing self-confidence and - developing self-confidence and capacity for self-improvement capacity for self-improvement - improving cognitive processes, - improving cognitive processes, motivation and moral concepts motivation and moral concepts - by active involvement, will be 97

8 Weaknesses Opportunities 98 - low level of public education about the benefits of practicing sport - cumbersome acceptance of the implementation of voluntarism in sport - trend of population aging - the existence of a limited number of specialists who can help increase athletic performances - limited research in the sport field - lack of special physical activity programs for people with disabilities - reduced number of hours of sport in schools - lack of motivation and involvement of teachers and qualified people working in the sport field - poor management in ensuring annuities by lacking the imposition of restrictions and obligations for athletes who obtained them - offering scholarships - recognition of athletic performance by providing life annuities - lifestyle change - low exposure of the risk of becoming overweight, depressed, drug consumers or in the case of females to become teenage mothers - increasing abilities such as perseverance, teamwork, setting goals, leadership, character development, can be transferred from sport environment in the school environment, in the family life and work - large number of young people who choose and complete specialist training in sports experienced the community spirit, the joy of sport and the values of voluntary work; - better integration into normal social life of people with disabilities - large number of practitioners of sportsamong people from disadvantaged categories (disabled, refugees, ethnic minorities, etc.) - high level of public education about the benefits of practicing sport - large number of practitioners of sports - the existence of social welfare policies - limited number of specialists in the field of professional sports - low population - superficial qualification of teachers working in sport especially in primary and lower secondary - offering scholarships - low exposure of the risk of becoming overweight, depressed, drug consumers or in the case of females to become teenage mothers - increasing abilities such as perseverance, teamwork, setting goals, leadership, character development, can be transferred from sport environment in the school environment, in the family life and work - inclusion of disabled persons in a normal social life; - access to sports schools run by sports clubs be made available to all children

9 Threats Technology Strengths - unequal access of the population to sport - the employment labour rate in decline - decline of physical activity due to increasing percentage of the obese population - abandonment of sports activity around the age of years for various reasons - lack of parental education in sports - changing the perspectives of families on practicing competitive sports (especially in locations other than home) hampering the selection of athletes for performance programs - (rapid) population ageing - emigration of young people and their families in other countries - lack of public health education - changing the perspectives of families on practicing competitive sports (especially in locations other than home) hampering the selection of athletes for performance programs - emigration of young people and their families in other countries - increasing access to internet and - latest generation facilities in computer systems; certain sports branches; - developing and improving - consolidated research and communication channels development activities in sport; - attempting to ensure better access to sports facilities throughout the country - access to the logbooks, licenses, patents - quality of technical education - using the optimum technologies supplied Weaknesses - poor management of research funding in the sport field - lack of staff knowledge about modern means of information - large number of inoperative or degraded sports facilities; - limited number of specialists and researchers in sport; - large number of sports facilities with minimum infrastructure - mismanagement of the sport facilities - limited access to the latest information - lack of technological renewal solutions - poor equipment of gyms in areas inaccessible geographically - staff working in the sports field just not familiar with the latest trends in technology especially in areas inaccessible geographically - lack of awareness in some areas inaccessible geographically 99

10 100 - specialized staff in sport does not have knowledge of operating the latest technologies Opportunities - new discoveries and developments - cheaper technologies - increasing access to the latest technology - the impact of changes in information and communication technology Threats Conclusions - decreased access to the latest technologies - the high cost of the latest technologies - insufficient research funding in sport - diminution of the capacity of research centers regarding the dissemination on the market of information and technology resources that could lead to the development of sports - the impact of globalization - new discoveries and developments - cheaper technologies - access to the latest technology - specialized staff in sport having knowledge of operating the latest technologies - the high cost of the latest generation technology - lack of specialized staff In this comparative analysis, we can see that we are dealing with two different sports management systems in terms of organizing, but which also have commonalities. The budget allocated by the Ministry of Youth and Sports from Romania is quite small, almost insufficient compared to the relatively large population of over 19 million inhabitants, compared to Norway s population of over 5 million inhabitants and budget 4 times higher than that of Romania. Although Norway has a cold climate, from the statistical data we note that half of the population is legitimated to sports clubs, practicing mass and performance sports, and the number of affiliated sections is double than that of Romania. Studies carried out by the European Union showed that 60% of the Romanian population does not practice any sports activity, Norway as part of the Nordic countries, is among the first places with most practitioners of sports activities. Along the years Romania has achieved at the Summer Olympics a number of 306 medals and at the Winter Olympics a single medal compared to Norway that won 152 medals at the Summer Games and 329 at the Winter Games, considering that Norway has participated to 47 Olympic Games to Romania 41 times. Although allocated the largest budget after 1989 for the Olympics at Rio, and the Romanian medalists athletes receive in addition to financial remuneration from the Ministry and all Forums and sponsors also an annuity after retirement from sports, which place Romania among the top countries in Europe in recognition of the merits of sports performance, the athletes have achieved the worst results in the history of Romanian sport,

11 compared with Norway, which has not provided any material or financial award to those who win any medal at the Olympics in Rio. The SWOT and PEST analysis showed that politically the Romanian sports system having valuable athletes, ambassadors for Romanian sports internationally recognized, the sport system management unfortunately is obsolete, and the Romanian political system all these years after 1989 had a negative impact that resulted in effects like politicizing the occupation of public posts after every election on the grounds of political affiliation (spoil system) and not competence (merit system) through favoritism, promoting the interests of obscure groups at the expense of the population, compared with Norway where political stability is very good. Both in Norway and in Romania, the lack of laws to promote and attract sponsors is unfortunately missing as well as it does the encouraging of establishment and development of private sports clubs. From the economic point of view, the Romanian sports system receives a very small percentage of GDP for sports activities. Relatively low absorption of grants, as well as directing their mismanagement, problems of bureaucracy and other financial problems the system is facing, led to the decline of the Romanian sport. A lot of experts have immigrated to other countries financially developed with a better sport system put in place. In the last 6 years in Norway, the number of Romanian gymnastics coach has reached 30. A good example is that Romania, which held supremacy in gymnastics, at the Olympics in Rio was not qualified with the team of boys and girls and didn t bring any individual medal. Norway s economy is stable, and personally I believe that professional athletes should be more motivated financially as well as putting an emphasis on the development and support of Summer Olympic Sports. From the social point of view, Norway gives a better integration in the social life of all persons, considering specifically the people with disabilities, refugees, ethnic minorities, etc., where Romania would have much to learn from. Thanks to accurate information on the benefits of the individual through sport, we find here a large number of practitioners and members enrolled in sports organizations or associations. A weakness in this area is insufficient number of specialists in the field, the superficial qualification of some teachers working in primary and secondary education. Romania can be proud of a school of training coaches and teachers recognized internationally, but unfortunately, they are not stimulated to practice or to remain in the country. Due to the high cost of technology, many sports centers in Romania are poorly equipped and the staff is not ready to meet the new technological requirements. Although Norway is facing the same problem, it excels financially. I believe that Romania needs to change the management system of sports, not only by drawing development strategies but by putting them into practice for all educational levels, adopting laws favorable to fundraising, sponsorships and grants. The infrastructure of the sports facilities should be put in place, either by caring the existing or by upgrading them and trying to use their full capacity. It should be introduced the mass sports competitions involving the School Inspectorate and municipalities. Professional athletes who receive annuities and are retired from sport activity, as models for society, should be involved in promoting sport both locally and nationally. I believe that Norway must put emphasis on the professional training of coaches and teachers in sports, the adoption of laws favorable to attract sponsors and encouraging private sports clubs. Special emphasis should be placed on financing and development of the other sport branches specific to the Summer Olympics. 101

12 References 100 years of Olympism in Romania, Bucharest 2014 Eurostat - Statistics Explained 2014 Olympic Charter of the Romanian Olympic Committee European Commission, Eurobarometer Sport and Physical Activity, 2013 Norges Idrettsforbund, Joy of Sport for all sport policy document National Strategy for Sport 2016 of the Ministry of Youth and Sports