...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 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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...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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...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...
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... 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. Opera employees; having...
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...UTAH SYMPHONY AND UTAH OPERA: A MERGER PROPOSAL Case study prepared by Kristian Alexander for Professor John Oesch. © Rotman School of Management, Kristian Alexander, 2004. ____________________________________________________________ _______________________ 1. The case1 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 according to a very different financial model and generate income primarily through ticket sales (approximately 46%) and individual contributions (approximately 36%). Since September 11, 2001, all arts organizations in the United States had experienced a dramatic decline in public and government subsidies that had led to revenue loss and major operating deficit. To compensate for the decline in attendance, ticket prices had been slightly increased but this did not stop the stagnation in the arts organizations. Utah Opera was formed in 1976 by the renowned European operatic talent Glade Peterson who served as a General Director until his death in 1990. The following year Anne Ewers was named General Director. Under her direction, the opera continued to 1 Case study written by Professor Thomas J. DeLong and Ph.D. Candidate David L. Ager, Harvard Business School, No. 9-404-116, Boston, MA, 2004. 1 grow, increasing its number of annual productions and the number of young people attending the performances of the...
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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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...JRFT Task 2 The action plat that Ewers should develop to ensure the success of the merger between the Utah symphony and the Utah opera are as following. First and foremost certain issues need to be addressed. The Utah symphony and the Utah opera organization were dealing with several financial and leadership issues. Ewers would have to create some effective strategies for managing the key financial and leadership strengths and weakness of the combined organization in order for the merger to be a complete success. (A1) Utah’s Symphony financial strength: One of their main financial strength is the company’s above average endowment. Their endowment fund in 2002 stood impressively above the 10 million mark. This endowment amount was considered higher than the average endowment by other symphonies nationally who share the same grouping as the Utah symphony. This financial strength puts the Utah symphony near the top of all Group II symphonies in the nation when compared to the average endowments of other Group II symphonies of about $8.8 million (Delong& Ager, 2005, p.4). Another key financial strength of the symphony was the projected growth in revenues from performances from 2001 to 2002 seasons. In 2001, performance revenue came in at $3, 836,513 for the season, and was projected to grow at an annualizedrate of 16 % up to $4,516,308 (Delong& Ager, 2005, p.15). This projected revenue increase is seen as a strong indication for the financial future as well. Utah’s Symphony...
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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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...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 look towards...
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...RJFT Task 2 Iesha Armour A. 1. “Before the merger the Utah Symphony dealt with many financial issues. A major financial weakness with the symphony is its inability to negotiate the salaries of the employees. All of the symphony’s employees are under contact which leaves them with the financial burden of having to pay salaries regardless of the ticket sales. A financial strength of the symphony was the above average endowments. The symphony was considered to be at the high end of a Group II symphony orchestra and received an above average endowment for its status. A leadership strength for the symphony was the fact that they had two leaders, one for its musicians, Keith Lockhart, and Scott Parker, who was the chairman of the board. The symphony’s CEO announced his resignation in 2002, which is a leadership weakness. Having to replace a CEO in an organization like the symphony is a difficult task. Finding a professional and seasoned individual to be the CEO of the symphony was a major issue for them during this time of duress. Symphony Weakness Symphony Strengths Contracted employees (financial) Above average endowment (financial) Resignation of CEO (leadership) 2 Leaders (leadership) A1a. Key steps Anne should take to address the weaknesses to ensure a successful start of the merger will be: • Analyze the current financial status of the symphony by looking at the ticket prices and determine how to keep the sale price close to their current rate...
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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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...Running head: JFT2 Organizational Management – Task 1 JFT2 Organizational Management – Task 1 Charles Jorgenson WGU 1. Bill Bailey Motivational Technique Mr. Bailey could effectively use Vroom’s Expectancy Theory to motivate his organization to oppose the merger. Vroom’s Expectancy Theory can be summarized in this way: The probability of a person acting in a certain way depends on the strength of the belief that the action will create a certain outcome and the attractiveness of that outcome to the person (Lawler, 1973). This means that it is more likely that people will act in ways that they believe will produce positive benefits for themselves. In Mr. Bailey’s situation with the Utah Opera, the action is whether or not to support the merger and the outcome is the continued financial stability of the Opera. Mr. Bailey could contrast the Opera’s financial stability, flexible business model, and cash reserve with the Symphony’s financial troubles and union-locked business model. The logical result of this comparison would be that the Opera could only become less financially stable by a merger as the Symphony doesn’t have many positives to offer in that area. Using this technique would motivate the Opera to not support the merger as they would strongly believe the merger would leave them in a less desirable financial situation. The lack of attractiveness of this new financial situation would be hard to measure. One way to solidify its lack of desirability is to...
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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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...Utah Symphony And Utah Opera Merger RJFT Task 2Iesha ArmourA. 1. “Before the merger the Utah Symphony dealt with many financial issues. A major financial weakness with the symphony is its inability to negotiate the salaries of the employees. All of the symphony’s employees are under contact which leaves them with the financial burden of having topay salaries regardless of the ticket sales. A financial strength of the symphony was the aboveaverage endowments. The symphony was considered to be at the high end of a Group II symphonyorchestra and received an above average endowment for its status. A leadership strength for the symphony was the fact that they had two leaders, one for its musicians, Keith Lockhart, and Scott Parker, who was the chairman of the board. The symphony’s CEO announced his resignation in 2002, which is a leadership weakness. Having to replace a CEO in an organization like the symphony is a difficult task. Finding a professional and seasoned individual to be the CEO of thesymphony was a major issue for them during this time of duress.Symphony Weakness Symphony StrengthsContracted employees (financial) Above average endowment (financial)Resignation of CEO (leadership) 2 Leaders (leadership)A1a. Key steps Anne should take to address the weaknesses to ensure a successful start of themerger will be: • Analyze the current financial status of the symphony by looking at the ticket prices and determine how to keep the sale price close to their current...
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