Essay on Billy Beane Case

797 Words May 12th, 2014 4 Pages
“Billy Beane: Changing the Game” Case
1. Based on the “Billy Beane: Changing the Game” case, explain how and why the Oakland A’s economic situation after 1995 shaped its:
a) Compensation Strategies
In the world of major league baseball, Oaklands A's defied the laws of baseball economics. The team spent only $34 million (the 2nd lowest payroll) had won 102 games and lost only 60 in 2001. On top of this, they finished first in their division and made the playoffs.
Major baseball teams would hire high school players than college players. This made high school players costly. Oaklands A's strategy is to hire College players to save on resources. They argued that college players have already gained substantial exposure and competition.
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Bean is convince with the fact that "a young player is not what he looks like, or what he might become, but what he has done. The bottomline is what the player has produced in college. Bean and DePodesta believed that they could forecast future performance of college players more effectively than high school ones.
Another staffing strategy is the case of Scott Hatteberg. Hatteberg plays with the Boston Rex Sox. He was injured and was never signed up by Sox. Oaklands A's did not waste time and hired Hatteberged. A's has done this because Hatterberg's has an on-base scoring record. According to A's, Hatteberg filled up what is missing in the team.
c) Training and development strategies
Batting average was the norm adopted by other baseball teams. But training for Oakland was focused on the player’s ability to obtain on-base scoring. The team relied more on selecting players by their on-base percentages. According to Sabermetrics model, teams always win with players having attained high on-base percentages.
Oakland's Training and development strategies embraced on-base percentage as a philosophy for the entire Oakland organization. This system was the star. Each minor league team in the Oakland system began to lead it league in walks, and resulted to higher on-base percentage.
2. Explain how the compensation, staffing, and training strategies were aligned or integrated with each other to create an overall HR strategy for the Oakland A's organization.

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