...Strategic Analysis of the Merger of Utah Opera and Utah Symphony Financial and leadership strengths and weaknesses of the Utah Symphony. There are almost no financial strengths that can be claimed for the Symphony. The only one that is evident in Exhibit 3 is that performance revenues are projected to increase by 18% for the succeeding year, 2002. Weaknesses are more evident and significant as outline in the following section. The most significant weakness is that the expenses are almost equal to the revenues. This breakeven situation means the symphony has no cushion against any period of low earnings. A second weakness is that the projected surplus is projected to fall to just 0.02% of revenue. The implication is that without intervention, the entity is headed for bankruptcy. The third financial weakness is that the entity operates on fixed contracts with guaranteed salaries. This gives the entity weak flexibility to manage wage levels. Fourthly, the negotiated future salary increments in an uncertain environment create an inflexible financial burden. The final weakness is that the Symphony does not own the facilities within which it holds local performances and houses its administrative offices. The first strength is that the symphony is a long-established entity and the leaders have maintained a strong and stable organizational culture. The second strength is that the leaders, from Abravanel to Lockhart, created a vision for expansion to global status...
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...Vertical: Stability/Flexibility The position on the vertical axis determines who makes decisions. At the lower end, control is with management, whilst at the upper end, it is devolved to employees who have been empowered to decide for themselves. Stability is a valid form when the business is stable and reliability and efficiency is paramount, but when environmental forces create a need for change, then flexibility becomes more important. (Changing Minds.org) The two dimensions of the CVF are further classified into four models or cultural types, each one containing a different set of effectiveness criteria. Quinn and Rohrbaugh (1983, p.371): Clan, Adhocracy, Market, and Hierarchy, respectively (Cameron and Quinn, 2006, p.29‐35). 3 4 Beginning with the top left quadrant, internally focuses and flexible, the clan culture is distinguished by shared values and common goals, an atmosphere of collectivity and mutual help, and an emphasis on empowerment and employee evolvement. A Clan culture is typically developed under certain conditions where there is an absence of institutional alternatives and other...
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...Strategic Recommendations for Anne Ewers Regarding the Merger of the Utah Symphony Orchestra and the Utah Opera Company Nanette Riggs 288311 JFT2 Task 2 28 May 2014 RIGGS 288311 JFT2 TASK 2 A1. Financial and Leadership Strengths and Weaknesses of the Utah Symphony (USO). Financial makeup: The majority of income for the USO is generated through ticket sales, individual contributions, business and foundation giving, government grants, and endowment and investment income. The majority of expenses for the USO are orchestra salaries including related benefits and payroll taxes, as well as management costs, and fund-raising expenses such as bad debt charges due to pledges that went unpaid. Strengths: The USO has a historical budget of approximately 12 million dollars, with a net surplus of about $116,000 for years 2000-2001. The USO generates substantial revenue through strong ticket sales, resulting from over 200 performances on a year round schedule. Historically, this amounted to approximately 3.8 million dollars, with a projected increase in the coming year to over 4.5 million dollars. USO also realizes about 25% of its operating budget from grants, and while the amount is projected to dip slightly for the next year, it will remain close to 25% of the operating budget. During a time of financial hardship for the performing arts, the USO realized strong contributions from business and foundation giving of over 4.4 million dollars in the previous year, with projected contributions...
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...A. Compare the cultures of the two companies using the relevant values in the attached “Competing Values Framework.” The Competing Values Framework model was developed for cultural assessments of organizations that shows the effectiveness in a two dimensional layout. In the Competing Values Framework model, there are four culture representations, Adhocracy, Clan, Market and Hierarchy. The Symphony and the Opera fit into one of the categories as individual organizations. More will be discussed on which category each belongs in, plus a comparison with each of the other three cultures. Included in the Competing Values map is two other cultural dimensions. The Horizontal dimension is located on the left of the model and maps out the inward or internal focus and integration. The primary attention focuses inward within the company or organization. When environments are less competitive and focused on the customer, internal focus is the most important dimension element. The outward or external focus and differentiation is located to the right of the model. The focus is primarily outwards, to the external environment, customers and suppliers. The Vertical dimension is located at the top and bottom of the model. This lower axis has more to do with who makes the decisions. At the bottom of the model, is Stability and Control which is geared more to management control. While at the top is Flexibility and Discretion which empowers employees to make decisions...
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...JFT2 Task 3 Tips Each section of the guidance provided below corresponds to a rubric prompt associated with the assessment. A score of 2 must be achieved on each rubric item in order to pass this assessment. Any additional questions can be directed to the course mentors at MBAOrgBehavior@wgu.edu. Thank you! A. Company Culture | | | | | (0) Unsatisfactory | (1) Does Not Meet Standard | (2) Minimally Competent | (3) Competent | (4) Highly Competent | The candidate does not provide a logical comparison of each company’s culture before the merger to the 4 types of organizational culture, using the Competing Values Framework. | The candidate provides a logical comparison, with no detail, of each company’s culture before the merger to the 4 types of organizational culture, using the Competing Values Framework. | The candidate provides a logical comparison, with limited detail, of each company’s culture before the merger to the 4 types of organizational culture, using the Competing Values Framework. | The candidate provides a logical comparison, with adequate detail, of each company’s culture before the merger to the 4 types of organizational culture, using the Competing Values Framework. | The candidate provides a logical comparison, with substantial detail, of each company’s culture before the merger to the 4 types of organizational culture, using the Competing Values Framework. | There are two components that should be included in your response to this...
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...Organizational Management WGU JFT2 Task 1 June 4, 2014 Task 1A1 Adam’s equity theory stresses the importance of maintaining a balance between an employee’s inputs and outputs. Common inputs can include hard work, tolerance and enthusiasm and common outputs can be salary, benefits and recognition or rewards. The maintenance of this balance between inputs and outputs results in more productive, efficient and content workforce. A good way to look at this is that a worker will feel equal if he or she perceives that the reward received for their hard work is the same as that of an employee of the same level. If the reward received by the second employee ends up being greater or if the second employee receives the same reward for less work, the first employee may feel neglected and may even become less productive to match the second employee’s performance level. Looking at the merger scenario between the Utah Symphony and the Utah Opera we can see that Bill Bailey, the chairman of the board of the Utah Symphony organization should use the Adam’s equity theory to stress his opposition to the merger. Currently the opera is financially stable while the symphony is not. The opera has also been utilizing funds wisely, while the symphony has been acting to the contrary. If a merger should occur, the opera employees may perceive that this is an inequality and that the symphony will be making out since the merger will surely put the symphony in a better position financially...
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...Deana Lawrence, 70211 Organizational Management JFT2 Task 1 A. Analysis Document A1. Bill Bailey Bill Bailey’s position in the decision of whether or not the merger should happen is not simply a business decision. With these different aspects to be considered with the merger, utilizing Vroom’s Expectancy Theory will help to guide his very difficult decision. This theory offers a framework to utilize the director position as leader to influence others and persuade them to support the merger. First and foremost are the community objections to the merger. This is where both the opera and the symphony received the majority of their funding so it would have to be taken into account that the public was opposed mostly due to the fact that the opera and symphony were so different in nature and they were concerned that the two would be melted into one big pot instead of keeping their identities separate. The biggest reason for the supporter concerns with this melting possibility is that they want their donations to go to specific performances and if all the funds received all went to a big pot, their donations wouldn’t be reaching the programs they are donating to. Vroom’s Expectancy Theory has three areas; Expectancy, Instrumentality, and Valance. Expectancy: To put Vroom’s theory into action, Mr. Bailey would need to guarantee that the merger would benefit both performing arts companies through positive revenue for the symphony plus providing more exposure for the opera. Instrumentality:...
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...JFT2 Organizational Management Task 2 Western Governors University JFT2 Organizational Management Task 2 A1. Utah Symphony Strengths and Weaknesses The Utah Symphony has been a leading arts organization in the western part of the United States for decades. They have a rich, long history. Many strengths have contributed to this success and continue to do today. Financially, the organization is able to raise money through various means. For the fiscal year 00-01, the symphony was able to raise $3.8 million through performance revenues, $3.1 million through government grants, and $4.5 million through fundraising. With another $1 million coming from investments other minor sources, they had an operating budget of $12.4 million for the year. This puts the symphony well over its Group II, as designated by the American Symphony Orchestra League, orchestral peers that average an operating budget of $8.8 million. The symphonies fundraising and performance revenues are projected to increase for the 01-02 fiscal year, proving these a strength despite a slowing economy. A major financial weakness that the Utah Symphony must confront is the full-time salaries of the musicians. The symphony employs 83 musicians and they receive a salary between $50,000-$85,000 along with benefits. These partnered with the associated payroll taxes accounts for almost 60% of the symphony’s budget. In the next two fiscal years, the symphony’s problem isn’t looking better with the musicians...
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...JFT2 Organizational Management Task 2 Developing an action plan for Anne Ewers The Utah Symphony has proven its ability to generate substantial sums of Revenue with both performance revenues and by securing large sums of income from governmental grants along with generous contributions from individuals, corporations and foundations. The Symphony’s ability to draw large crowds along with their demanding schedule length allows them to offer the community ample opportunities to participate. The Symphony provides sustainability for 83 full time musicians, and this allows them to concentrate on the goals of the Symphony without the worries of looking for other income opportunities. Mr. Lockhart is a very talented and experienced music director that has a personal commitment to his symphony. Mr. Lockhart’s role as the music director comes with many challenges, it is through these challenges that he has elevated the Utah Symphony to the status they enjoy today. The musicians and Mr. Lockhart have developed a relationship of trust and respect, Mr. Lockhart has publicly acknowledged how important they are to the overall success of the symphony and his success as a director. The Utah Symphony has a very demanding schedule and with it comes great expense; the symphony needs to look for cost cutting options to maintain operations. They are relying on generous governmental funding and other contributions that are simply not what the previously had been. The symphony will need to...
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...JFT2 Task 1 A. Create an analysis document (suggested length of 3–5 pages) in which you do the following: 1. Illustrate how Bill Bailey, chairman of the board of the Utah Opera Organization, might use one theory of motivation to oppose or support the merger. It is understood that the merger of the Utah Opera and the Utah Symphony has several positive factors. However, Bill Bailey, chairman of the board of the Utah Opera, strongly opposes the merger. It is up to him to convince the remaining board members to vote in opposition as well. Mr. Bailey can use the Adam’s Equity Theory to accomplish this. The Adam’s Equity Theory, as a process theory of motivation, explains how an individual’s motivation to behave in a certain way is fueled by feelings of inequity or a lack of justice (Kreitner & Kinicki, 2010). This is especially true for give and take relationships, which Mr. Bailey feels is the situation at hand. There are two main components of any relationship, inputs and outcomes. The Utah Opera is financially stable and because they do not employ full-time musicians, can alter their schedule when necessary fund raising has not been accomplished. The Utah Symphony, on the other hand, has a large staff of contracted employees who are paid full salary for the entire year. The Opera owns their property while the Symphony’s theater is owned by the county. By looking at past financial statements, it is apparent that the Opera historically operates at a much greater surplus of funds than...
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...JFT2 Task 1 A1. There are several theories of motivation that Bill Bailey could use to support the merger, my recommendation would be that he use McClelland’s Need Theory. This theory is broken down into three different needs: · The Need for Achievement – individuals have the need to accomplish something that is difficult. · The Need for Power – individuals have the desire to motivate, teach, influence and encourage other members of their team. · The Need for Affiliation – individuals have the desire to spend time doing social activities and forming social relationships. Mr. Bailey can utilize the McClelland Need Theory in the following ways: · Need for Achievement – Mr. Bailey can convince Anne Ewers that the merger can benefit her both personally and professionally. Ewers had already achieved great success at the Opera and she can showcase these achievements by utilizing her talents with fundraising and helping to increase the annual budget. Mr. Bailey can help the staff gain the need for achievement by encouraging them to help with fundraising activities and think of new ideas that would make the merger more efficient. Asking instead of telling is always helpful when in a position of authority. It’s important that staff feel they are listened to. · Need for Power – This need can be utilized in several ways. The board members can be led to understand that the merger will benefit both parties by focusing on the one thing they desire to improve: the public’s...
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... 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 that those that work hard at becoming proficient at a certain task, perform at a higher level than ...
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...JFT2 – Organizational Management: Task 1 A. Create an analysis document (suggested length of 3–5 pages) in which you do the following: 1. Illustrate how 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...
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...2 Jessica Emmons JFT2 Organizational Management Task 1 July 30, 2014 1. Bill Bailey – chairman of the board of the Utah Opera Organization a. Adam’s Equity Theory of Motivation Adam’s Equity Theory of Motivation is a model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. The organizational justice theory is an expansion of the equity theory that works to explain employees’ attitudes and behaviors and reflects the extent to which people perceive that they are treated fairly at work. There are three different components of organizational justice: i. Distributive justice – the perceived fairness of how resources and rewards are allocated ii. Procedural justice – the perceived fairness of the process and procedures used to make allocation decisions iii. Interactional justice – the extent to which people feel fairly treated when procedures are implemented (Kreitner & Kinicki, 2010) Bill Bailey’s concerns regarding the merger focus mainly on the financial stability and flexibility of the opera versus the symphony and the fear that the opera will lose its identity. According to Mr. Bailey, the opera has a reserve fund and is financially stable. In addition, as a result of the current business model, the opera has the flexibility to adjust the size of opera or eliminate projects if necessary, while the symphony has a 52-week orchestra without any flexibility...
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...JFT2 Task 1 A1 The two motivational theories the board members Bill Bailey and Scott Parker should employ to motivate and support or oppose the merger between the Utah Symphony and the Utah Opera are McClelland’s Need Theory and Adam’s Equity Theory. Bill Bailey the highest ranking officer as chairman of the Utah Opera board is tasked with conducting business in an orderly fashion. As chairman, it is Bill’s job to lead the other board members from varying points of view or decisions to making decisions that are in the best interests of the organization he presides over. Finally, it is Bill’s job to set the overall direction and strategy of the organization. For Bill, McClelland’s Need Theory is most appropriate considering his position on the proposed merger. This theory comprises of three needs; the need for achievement, the need for affiliation and the need for power. The need for achievement is to accomplish something difficult (Kreitner & Kinicki, 2010). Bill has two primary concerns regarding the merger. One is the financial strength of the opera versus the symphony. The opera had established a reserve fund and as a result was more financially stable and had a more flexible business model. Second, is that the opera could potentially become a tier one arts organization as a result of the merger but in doing so could also potentially lose its identity. Bill could look at these two challenges as something worth accomplishing. Historically, there haven’t been a lot...
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