...MERGER OF UTAH OPERA AND UTAH SYMPHONY 1 Laurie Taggart WGU / JFT2 Task #1 July 13, 2014 MERGER OF UTAH OPERA AND UTAH SYMPHONY A1. Bill Baily – Vroom’s Expectancy Theory Expectancy theory is the belief “…that people are motivated to behave in 2 ways that produce valued outcomes.” (Kreitner, 2013) This theory is best applied to situations that present two or more alternatives. As in the case of the merger between the Utah Opera and Utah Symphony. Bill Baily, Chairman of the Board for the Utah Opera will have to consider whether or not he will support the merger and if the merger will produce valued outcomes. There are three concepts that are key in Vroom’s expectancy theory: expectancy, instrumentality, and valence. Expectancy is the belief...
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...Financial Strengths and Weaknesses of the Utah Symphony Before the Merger The financial state of the Utah Opera before the merger was grim. It was understood by the symphony’s chairman of the board, Scott Parker, that the situation was getting worse. This was aggravated by the downturn of the economy and the event of 9/11. However, even before the economic downturn and 9/11, the symphony was very close to a deficit situation (Delong & Ager, 2005). Scott Parker assumed the chairmanship to try to mitigate the situation. The average endowment or contributions for a Group II orchestra like the Utah Symphony is $8.8 million in FY 2001-2002. The endowment for the symphony is considered in the top end within its group. To be able to accumulate more than the average Group II orchestra is a financial strength. In January 2002, the total endowment for the Utah Symphony was $10 million. At the same time that the symphony is above the average orchestra within its group, it is also spending substantially. Artistic costs constitute the major expense category of expense for the orchestra (see Table 1). The symphony does not own its facilities. The building that houses the offices and the Abravanel Hall where the symphony performs are owned by the county. Most of the symphony’s cash (+90%) is allocated to orchestra and development (fund-raising) staff salaries, benefits, and payroll taxes. The orchestra musicians are unionized with annual salaries of $50,000 to $85,000...
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...|Utah Symphony and Utah Opera Merger Proposal| || 4/23/2012|Organizational Management Analysis| |This project will look at theories of motivation relating to the merger as well as discuss positional and personal power concepts. A discussion will also address the musician’s concerns which could potentially jeopardize the merger. The project will conclude with a look at various influential tactical strategies utilized in persuasion.| Utah Symphony and Utah Opera Merger Proposal Organizational Management Analysis Bill Bailey and motivation theory in opposition to the merger Bill Bailey is the current chairman of the board of directors for the Utah Opera Organization and could pose a significant roadblock to merger the approval process if he does not publicly or privately support the merger. One area of the merger where Bill Bailey already has expressed concern is regarding the potential inequity between the two groups in a post-merger environment, which directly relates to Adam’s equity theory. In order to understand Bill Bailey’s potential concerns, it is imperative to understand the principal and philosophical logic behind equity theory. As the name implies, equity theory is model of motivation that describes the feeling that interpersonal relationships should be fair and equitable in the workplace. More specifically, Adam’s motivational theory seeks to explain how an individual’s motivation to behave in a specific manner may be fueled by perceived inequity...
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...Bill Bailey The Opera is a much smaller organization than is the Symphony, both in personnel and budget. Indeed, many of the Opera employees expressed concern that they would simply be absorbed by the larger Symphony without regard to their uniqueness and reputation within the community. Bill Bailey, as chairman of the board of the Utah Opera, is in a unique position to influence the merger. He can seize the opportunity presented by virtue of his positional authority (power) to offer support for the merger by recognizing the perceived inequity by the Opera staff and artists – a perception that will become reality should he decide not to intervene. Baily’s first duty as board chairman is to the shareholders of the corporation, but he is vested with a very large and visible role in organizational governance as well. In that role, he balances the needs of shareholders, employees, and other stakeholders (to include ticket-buying customers). In his Equity Theory, Adams postulated that determining both negative and positive equity and inequity in an organization is a process of measuring anticipated outcomes from known inputs. Moreover, equity theory seeks to explain the correlation between an individual’s behavior and their perceived level of justice, or lack thereof. The financial balance sheet and estimations of future earnings potential serve to provide a cost basis for the merger. However, the larger question for Baily to consider is the perception by Opera staff that their...
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...Bailey, Chairman of the board of the Utah Opera Organization might use the Adams Equity Theory to support the merger. The Adams Equity Theory falls under the process theories of motivation. These theories focus on explaining the process by which internal factors and congnitions influence employee motivation. This theory focuses on the balance or imbalance that exists between an employee's inputs and outputs. Equity exists for employees when they feel their ratio of perceived outcomes to inputs is equal to the ration of outcomes to inputs for a similar coworker. The employee wishes to see employer returns or outputs based on what they input to their job performance. Interactional justice is the last component to this theory and is the extent to which people feel fairly treated when procedures are implemented. This is achieved by managers communicating truthfully and by treating people with courtesy and respect. By recognizing that people have varying sensitivities to perceived equity and inequity and by noting that inequity can be reduced in various ways Bailey can help support the merger. He needs to highlight the mergers ability to showcase a climate for justice therefore he will be able to influence the employee's organizational commitment and job satisfaction. (2)Scott Parker might use Vrooms Expectancy Theory, which also falls under the category of process theories of motivation to convince Mrs. Abravanel to support the merger. This theory states that the motivation...
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...Utah Opera and Symphony Merger Utah Opera and Utah Symphony merger is an organizational plan to combine the two art-based organizations with an aim of increasing their effectiveness and efficiency. It involves fundamental changes that are beneficial to the operations of both companies. This documental analysis will assist Ann Ewers, General Director of the Utah Opera; make an informed decision concerning the merger process. The analysis will comprise motivation theories as well as other pertinent information that are essential for use in the merger process. It will also comprise different types of power and how to effectively deal with them in decision making, potential harm as a result of the merger, and how to utilize available influence in order to build additional support. A1. Bill Bailey Mr. Bailey Bill can effectively use McClelland’s need theory to convince Utah Opera to support the merger. The general concern raised by the theory is the need for affiliation. The theory emphasizes the need to continue with social relationships. It also calls for the need of group belonging and need for love (Kreinter and Kinicki, 2010). The opera members will be at a position of building more associations with individuals who support the added advantage of different art forms through additional interactions available with the symphony members. The merging of Utah Opera with Utah Symphony will ensure that the social circle will eventually grow to include all members...
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...RJFT Task 1 Utah Symphony and Utah Opera: A Merger Proposal Unlike major arts organizations in Europe and Canada that rely heavily on government agencies for their funding, orchestras and opera companies in the United States operate under a very different financial model. Income to support these organizations is generated primarily through ticket stales (approximately 46%) and individual contributions (approximately 36%) (Alexander, 2004). Since September 11, 2001, all arts organizations in this country have experienced a dramatic decline in public and government subsidies that has led to major loss of revenues for many of them. As a result, several arts organizations have made the decision to merge. To gain a better understanding of positions for or against the merger of the Utah Symphony and Utah Opera, I have explored motivations of various constituents. Below is a summary for use by Anne Ewers to think through potential issues that may arise during the merger process. Although the Utah Opera Organization’s Chairman of the Board, Bill Bailey supports the merger with the Utah Symphony, there is some hesitation on his part. Currently the Utah Opera Organization is financially stable, however its’ continued viability could be in jeopardy due to a decline in support of the arts (both private and public) possibly due to a negative overall world economic climate. To encourage the support of the Utah Opera Organization’s principals and constituents, Mr. Bailey could...
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...Utah Symphony and Utah Opera: A Merger Proposal There is a major discussion underway on the proposed merger of the Utah Symphony and the Utah Opera. Mergers in the arts are rare, and nonetheless, risky, therefore all parties are going through thorough discussions process before coming to a final decision. A merger of this sort is unfamiliar, therefore gaining support of the merger has been difficult. It is important to consider all parties and their concerns equally, and implement motivational methods and/or organizational tactics to gain support for the proposed merger. For members and supporters of the Utah Opera, the lack of support of the merger is rooted in the organization’s current good standing. The Utah Opera is financially stable, and is growing thanks to Ewers efforts leading the organization. With this in mind, the people are skeptic of taking the risk of jeopardizing their good standing, and also their identity in the arts. To address the concerns related to the Utah Opera’s financial stability, and what may be compromised with the merger, Bill Bailey, the chairman of the Utah Opera, may benefit from using McClelland’s need for achievement theory to improve the public’s attitude toward the merger. Although the Opera is in good standing, there is still so much opportunity for growth for their organization. This merger may be an opportunity for the Utah Opera to become a top tier organization in the arts, and reach equal recognition to the Utah Symphony. Rather...
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...Management JFT2 Task 1 Utah Organizational Management JFT2, Task 1: Utah Symphony & Utah Opera Proposed Merger Analysis Utah Symphony & Utah Opera Proposed Merger Analysis In 2002, a proposal was made to merge the Utah Symphony and Utah Opera due to the failing economy, collapsing of the stock market, declining government financial support, and a waning of donations for the arts. The proposed merger would help both organizations by economizing on costs and expanding the artistic potential of both organizations. Each of the organizations need to support the decision in order for the merger to be successful. A1. Bill Bailey and McClelland’s Need Theory Bill Bailey, chairman of the board for the Utah Opera, can apply McClelland’s need theory to convince the other Utah Opera board members to support the Utah Opera and Utah Symphony merger. McClelland’s need theory is based on three needs: the need for achievement, the need for affiliation, and the need for power. Mr. Bailey sees a need for achievement (the ability to accomplish something difficult) both for himself and for the Utah Opera (Kreitner & Kinicki, 2013). For the Utah Opera, Bailey sees continued success and growth as its need for achievement. The merger also presents Bailey with an opportunity to personally achieve a difficult task—a merger that is quite rare in the arts world. If Bailey can effectively aide in the successful merger of the two organizations, he can help the Utah Opera achieve success and...
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...Bill Bailey, chairman of the board of the Utah Opera Organization, might use one theory of motivation to oppose or support the merger. Response: One theory of motivation Bill Bailey will use to support the merger by using Alderfer’s ERG Theory shown below. The definition of this theory is the following: Alderfer's ERG Theory: Three basic needs - existence, relatedness, and growth - influence behavior. (Alderfer, 1960) Bill Bailey will have to focus on motivating the executive committees of the Utah Opera organization. This will be accomplished first by stating the facts and benefits of the merging of both the Utah Symphony with the Utah Opera and the benefits of a combined entity of both organizations instead of two separate organizations to ensure the survival of both organizations. The declining funding resources from the public and private sector for both Opera and Symphony organizations in Utah are drying up. It's very important for Bill Bailey to work with the three parts of the ERG Theory below Existence - Bill Bailey's sole purpose in convincing the executive committee of the Opera House is to ensure that the merger is seen a positive merger, one that will help strengthen the Opera House to diversify its organization with the addition of a Symphony and additional venues and musical resources of musicians and have controlling interest by having Anne Ewers as the CEO from its organization heading both the Opera and Symphony organizations. Relatedness - Bill is going...
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...A1. Before the merger, Utah Symphony had financial and leadership strengths and weaknesses. Financial strengths Symphony was the $8.8 million average endowments. A national trend led to the increases in ticket prices to yield higher revenues. The season prior to the merger, the symphony brought in considerable amount of revenue from events. The symphony brings in enough revenue to provide for full time positions for musicians through yearly contracts and salaries. The symphony is owned by the Salt Lake County; which potentially means the county could provide additional revenue through strong economic and demographic times. Another financial strength of the symphony involves a high rate of return on revenue through increasing the number of performances. By frequent repeat performances the costs are minimal compared to the generated revenue. Some financial weaknesses included donations for symphonies decreased nationwide. With ticket prices increasing, the attendance dropped and expenses increased due to a slow economy and rising supply prices. By the symphonies having such in slope in the attendance, it became pretty much impossible for the Utah Symphony to even consider adding more performances to the season, because they could not afford to hire on more musicians to accommodate these more performances. Another weakness includes a falling of revenues in order to support full time positions to staff members and musicians. The slow economy prevents the government from...
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...Utah Symphony and Utah Opera Utah Symphony and Utah Opera: A Merger Proposal Michael Zimmermann Western Governors University Organizational Management Utah Symphony and Utah Opera: A Merger Proposal 1. Theory of motivation to oppose or support the merger Motivation is a psychological response that leads one to act and includes the direction for the goal. The theory that would best allow Mr. Bailey to oppose this merger is the process theory. The process theory identifies specific factors that inspire the different motivations of an individual. This is accomplished a combination of the beliefs, perceptions, and thoughts of a person. We see that Mr. Bailey believes that a merger will deal with two entities that each want to keep their values in the arts. There is a perception by each entity that the merger will decrease the worth. The process theory focuses on both the internal and cognitive influences. This includes the motivation of an individual and their desire to feel a sense of balance or justice between input and output. There are three organizational justices that are all positively connected to job performance and engagement. When an employee believes that they have been treated in a fair manner then the engagement for that employee will be supportive and positive. On the contrary, when the employee feels that the employer is not appreciated, employee engagement will suffer. We see in the case study that Mr. Bailey has the initial response that...
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...Utah Symphony And Opera Merger Task 1 Utah Symphony And Opera Merger Task 1 Utah Opera and Symphony Merger Utah Opera and Utah Symphony merger is an organizational plan to combine the two art-based organizations with an aim of increasing their effectiveness and efficiency. It involves fundamental changes that are beneficial to the operations of both companies. This documental analysis will assist Ann Ewers, General Director of the Utah Opera; make an informed decision concerning the merger process. The analysis will comprise motivation theories as well as other pertinent information that are essential for use in the merger process. It will also comprise different types of power and how to effectively deal with them in decision making, potential harm as a result of the merger, and how to utilize available influence in order to build additional support. A1. Bill Bailey Mr. Bailey Bill can effectively use McClelland’s need theory to convince Utah Opera to support the merger. The general concern raised by the theory is the need for affiliation. The theory emphasizes the need to continue with social relationships. It also calls for the need of group belonging and need for love (Kreinter and Kinicki, 2010). The opera members will be at a position of building more associations with individuals who support the added advantage of different art forms through additional interactions available with the symphony members. The merging of Utah Opera with Utah Symphony will...
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...analyzing the Utah Symphony and Utah Opera merger case study, it was obvious that many factors, finances, personalities, and even the community would be involved. The wide reaching affects of a merger between these two types of organizations was eye opening. At the time of the proposed merger, the Utah Opera had a stronger financial footing and was not in danger of closing. The Utah Symphony however, was sliding down a dangerous financial slope. The organizations were structured differently in their number of employees and financial compensation packages. These differences would prove challenging in a merger and could be the basis Bill Bailey would use to oppose such a merger. Bill Bailey, Chairman of the Board of the Utah Opera Organization, could site Adam’s Equity Theory model in opposition to the merger. This theory basically states that an individual’s behavior is motivated by feelings of inequity or injustice (Kreitner & Kinicki, 2010). The inequity between the two organizations is vast. The opera is financially sound and has very few full time employees as compared to the symphony. The artists for the opera are hired for the individual performances and not contracted year round like the symphony performers. The symphony also has four times the number of employees and these are unionized contracts. So in Bill Bailey’s eyes, the opera is being used to bail out the larger symphony with it’s more financially sound budget. Also, the symphony performers will...
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...the board for the opera. Bailey is in a position of power to influence others (mainly the Board of Directors) to either support or oppose the merger. While there are multiple theories that could be used, I believe that the best is Vroom’s Expectancy theory. This theory “holds that people are motivated to behave in ways that produce desired combinations of expected outcomes.” (Kinicki & Robert, 2013) Vroom’s theory has three factors: Valence, Expectancy and Instrumentality. Valence, or rewards, refers to the directions which people embrace with respect to the outcomes. Expectancy (performance) is the different “expectations and levels of confidence about what they are capable of doing.” (Vroom's Expectancy Theory, n.d.) Instrumentality (belief) refers to the “perception of employees whether they will actually receive what they desire, even if it has been promised by a manager – the perceived link between first order and second order outcomes.” (Vroom's Expectancy Theory, n.d.) In using this theory, the reward for the Utah opera would be to remain financially stable during the downturn of the economy and less public/private donations coming in. The expectancy in this is whether they choose to support or oppose the merger with the Utah Symphony, which is looking to strengthen their finances with a merger with the opera, though in theory this would strengthen the bottom line of both organizations. The instrumentality in this theory is for the opera to continue to have...
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