...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 of over 5 million dollars during the next year. Historically, income primarily...
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...Organizational 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...
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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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... 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 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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...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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...JFT2 Task 1 Bill Bailey When presented with the idea of a merger between the Salt Lake Symphony and the Opera, Bill Bailey and the opera trustees expressed concerns about the financial standing of the two organizations with the opera being financially stable and could be flexible in size, number of performances offered, number of full time staff and fundraising events. On the other hand the symphony, a 52 week orchestra employing 33 full time staff and 83 musicians which along with a loss in funding left the symphony facing some financial challenges. It appeared to Bill Bailey that the symphony would be gaining much more from the merger than the opera and the only apparent benefit for the opera would be to become a tier-one arts organization but at the risk of losing its established identity. Bill could use Adam’s Equity Theory of Motivation to represent how this merger will not benefit the opera or its board and possibly hurt future operations. Adam’s Equity Theory of Motivation is one based on fairness and justice and the consequences of events that cause feelings of inequity or injustice. There are two components to this theory. First is the input, meaning what an employee provides for which a just return is expected for the efforts. Second is the output, meaning pay, bonuses, benefits and job security. Because people’s personalities vary each individual or group will evaluate events as either a positive or negative inequity when comparing outcomes with other involved...
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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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