Task 1- Organizational Management
A1. Bill Bailey
Bill Bailey is opposing the merger of the Opera with the Utah Symphony for several reasons. Using the Adam’s Equity Theory, Mr. Bailey will have the opportunity to persuade the members of the board to reject the proposed merger.
Adam’s Equity Theory states that employees perform at a higher rate if they feel that they are being treated fairly. Equity is obtained when a worker perceives that the reward for the amount of work performed is equal to that of a relevant worker. Negative inequity is perceived by employees as when the relevant worker receives greater rewards for the same work. Positive inequity is perceived as the relevant worker receiving fewer rewards for the same work.
By using the Adam’s Equity Theory, Mr. Bailey can introduce several arguments to dissuade board members from approving the merger. The first argument would center on the financial operations of the Opera. The opera has been operating in a financially responsible way, while the symphony has not. The opera has been able to retire its major debt, and has created an endowment to facilitate future operations. Currently the opera has also successfully obtained financial support from several local and national foundations. The symphony is a large organization which has a full time staff and pays the symphony members a full-time salary. Additionally, they are classified as a Group II symphony and so they receive a smaller endowment than Group I symphonies. The symphony would most likely be viewed by members of the opera as using the smaller opera company to subsidize its own costs, thereby capitalizing on the success of the smaller company. This could result in a perception of negative inequity by opera personnel.
The second argument would center on the operations of the two companies. The opera has operated in a responsible manner by