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Organizational Management-Task One

In: Business and Management

Submitted By GabbyMaggie
Words 2686
Pages 11
Leading & Managing Individuals
2015
GabbyMaggie
WGU – JFT Task 1
3/10/2015

Bill Bailey William Bailey, the current chairman of the board at the opera, must decide if it is in the best interest of the opera to merge with the Utah Symphony. Mr. Bailey expressed concern about the financial status of the opera versus the financial status of the symphony. The opera had a ‘reserve fund’ and a business model that afforded the opera the flexibility to cancel projects that did not meet its fundraising goals whereas the symphony did not have that ability. In addition, Mr. Bailey was concerned that the opera would lose its identity if it merged with the symphony. These were his primary concerns at the onset of the merger talks. If Mr. Bailey felt strongly enough and wanted to deter the merger from taking place he could employ the Adam’s equity theory. The Adam’s equity theory was developed by behavioral psychologist John S. Adams in the 1960’s. Adams theorized that an employees’ perception of fairness is either going to motivate them or de-motivate them. If an employee believes that their incomes and outcomes differ from others, then they become less motivated and their performance suffers. [ (Lockwood, Anderson, Fiester, & Sommers, 2010) ]. Some of the inputs for which the employee would expect a fair return would be education and training, skill level, creativity, seniority, effort expended, flexibility, and loyalty. Some of the outcomes are salary, benefits, job security but can also be fewer tangible assets such as praise, sense of achievement, recognition, and reputation. [ (Kreitner & Kinicki, 2013) ]. Mr. Bailey’s primary concerns was that the opera had already established a positive financial status and the symphony was not on the same level financially as the opera and the opera would lose its identity once the merger was

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