Organizational Management – Task 1

Bill Bailey, Chairman of the Board of Directors for Utah Opera, would likely choose to justify denying the merger using the Adam’s Equity Theory. The most basic definition of the equity theory is that motivation is a function of fairness in social exchange. There are two points that make the equity theory, inputs and outcomes. The inputs are talents and items the employee brings to the employer that make that employee qualified and valuable to the organization. The outputs are the organization’s contributions to the employee in exchange for their talents and inputs. There are a few items to help lay out the Adam’s Equity Theory that play off of inputs and outcomes. First is the Negative and Positive Inequity. Negative Inequity is the comparison employee A makes against employee B and employee A feels poorly because employee B receives greater outcomes for a perceived equal input. Factors that would play into the Adam’s Equity Theory for Mr. Bailey would include his argument that the Opera has a stable financial future that is adaptable in various environments (the inputs of the Opera in the larger new organization). The Opera, as described by Mr. Bailey, is able to change direction and financial commitment for various projects very quickly allowing them to cut financial commitments to potentially unprofitable projects. If Mr. Bailey were to put his words into the Adam’s Equity Theory showing the scales of justice we would see his believe of the merger as a Negative Inequity for the Utah Opera. His expression of this inequity would be explained that even with equal inputs into the joint organization, the Opera would receive fewer benefits (perhaps even determents) since it is already stable. His short response to the initial merger proposal also suggested mixed feelings about the equity exchange or becoming a tier-one arts organization, yet also perhaps losing their identity inside a larger overall organization.

Scott Parker, Chairman of the Board for the Utah Symphony Orchestra, would likely justify the merger to Mrs. Abravanel using McClelland’s Need Theory. The basis of this theory is a three-pronged appeal: 1) need for achievement, 2) need for affiliation, 3) need for power. For the need for achievement prong I believe Mr. Parker would explain to Mrs. Abravanel the urgency of the financial situation with the Symphony. The achievement that would be required would be to create an organization that could withstand the current economic downfall in order to survive financially. Once Mrs. Abravanel understands that her husband’s organization would fail to exist without this merger she might be more amenable to understanding the dire need. After explaining the financial achievement that would be in place with the merger Mr. Parker would use the need for affiliation motivator to convince Mrs. Abravanel that the Symphony would benefit from an overlapping relationship with the Opera. He would likely explain the history of fundraising by the current General Manager (and potentially future CEO of the future organization) of the Opera, Ms. Anne Ewers. Continuing to explain Ms. Ewers amazing energy for her current arts organization, her connections to high-end, long-term donors and interpersonal talents at building strong relationships. He would continue by explaining her late husband’s history with the Symphony would continue on as a legacy of greatness for the future organization. Parker would then also explain that the new organization’s goals would be similar to her late husband’s, of creating a strong arts organization focused on excellence in performing arts, community outreach, and education. And finally to address the need for power in the McClelland Theory, Mr. Parker would show Mrs. Abravanel the long-term financial impact a financially stable arts organization would have in the long-term. This merger would allow association of her late husband’s name with a