- 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.The theory of motivation that Billy Bailey, the chairman of the board of the Utah Opera Organization, can use to oppose the merger decision is the social identity theory. Under this theory, individual identity occurs as a result of membership in groups, which is the basis of social identity. In the case of these two music organizations merging, several identities will be recognized and several changes will be expected in the merger process. This change will be related to organizational change, workgroup identity, as well as professional identity. Organizational change and change in work identity group is likely to demotivate employees. Formation of a merger forces employees to leave behind their organizational identity in order to fit to the new identity. According to the social identity theory of motivation, in the merger process, most employees attempt to achieve a positive outcome as regards group identity in the newly formed organization (Paviglionite, 2007). This may either result into a strong group or biases because the employees focus on positive individual outcome rather than focusing on the organization. This leads to inter-organization relationship conflicts. This affects employee motivation because the employees remain in denial and disbelief of the formation of a merger.
As regards employee group status, those who are in the lower status workgroups fail to accept the fact that there are some workgroups that have a higher status than them and this leads to negative view of the merger. This occurs as a result of the lower status workgroup’ employees considering themselves lower in the new organization. Similarly, those employees in the higher status workgroup feel threatened that their positions may be overtaken by those below them following the formation of the new competitive organization. This may result into negativity towards the merger. In addition, this is likely to lead to work stress and job dissatisfaction, which are yet another, demotivating factors. In general terms, role conflict may result from formation of a merger due to job new requirements that arise following the merger (Buenger, 2006).
2. Illustrate how Scott Parker, chairman of the board of the Utah Symphony Organization, might use one theory of motivation to convince Mrs. Abravanel to support the merger.
Several theories can be used to support mergers and acquisitions. However, the commonly used theory to support merger is the Stewart’s theory of merger motivation. According to this theory, there are the actual motivating factors behind any kind of merger. These factors include the need for an increase in net operating profits, or increased financial performance. The increase in net operating profits is generally attributed to increased revenue or cost savings, which occur as a result of the use of technological efficiencies and increased market capabilities. Stewart’s theory of merger motivation goes ahead to state that mergers lead to increased economies of scales, increased market power, increased market due to geographical expansion, and increased combined capital base and product offerings (Buenger, 2006). The merger between the Utah Symphony and Utah Opera companies will lead to economies of scale that will eventually result into reduced costs, thus the need for forming the merger.
This form of partnering ensures that the two companies that have come together make use of the synergies between the companies, which is yet another justification for merging. When a smaller company merges with a bigger company, the merger enjoys economies of scale that result into reduced combined costs. When the two companies merge, there will be increased revenue because they will be able to reach a wider geographical location, which the merger will now target. By bringing two companies together, there is sharing of talents and experience from the two different companies. This new experience will lead to innovation that may eventually lead into introduction of new products and services in this music and entertainment business. This in deed will lead to increased revenues, thus increased net operating profits, which is the main motivator behind the formation of a merger (Paviglionite, 2007).
3. Describe Anne's positional power in relation to her personal power.
Positional power is related to personal power to a greater extent. Ann’s positional power is the legitimate power, which is commonly referred to as ‘formal power’. This is the power she obtains by holding a certain position in an organization. In this case, she is the General Director of Utah Opera. Usually, organizations assign certain powers to certain individuals so that they can effectively perform their duties. Positional power means the ability of a person, who holds certain position in an organization to influence his/subordinate’s behaviour either using rewards or coercion. Anne, being the General Director at Utah Opera has authority over all the managers and other directors within the company. Since she can directly contact Bill Bailey, the company’s board chairman, she is therefore in a position to ensure that the merger takes place effectively. This is possible by recommending the idea of merger to the chairman, who will in turn take action. Personal power on the other hand, means the expertise that Anne has. It refers to a person’s experience. In the case of Anne, she is well known by Opera and Symphony executives because of her enthusiasm, ability, and the energy she uses while performing her duties. While working at Opera, Ann has been able to increase the company’s revenue significantly. She knows how to conduct fundraising events because they all prove successful. In addition, she knows how to pledge for donations (Renee, 2006).
- Discuss how Anne could use her positional power to successfully lead the merger efforts.
Ann, the General Director of Utah Opera can use her positional power to successfully lead the merger efforts. For instance, as the organization’s director, she has the power to delegate duties. This allows her the opportunity to tell the managers to ensure that the merger efforts are successful by convincing the other managers and the subordinates on the importance of merging the two companies. As the general director, Ann can use her positional power to provide the organization’s vision, mission, as well as direction to the organization’s employees. She should however, not use her positional power to intimidate employees who are under her authority. It would be necessary to guide the employees by telling them where the organization is headed to and the need for the merger to meet the organizational goals, objectives, mission, and eventually, the vision. She needs to show and to let the employees understand when it is necessary to form the merger and assure them that they will feel no less when they join the larger competitive organization.
b) Discuss how Anne could use her personal power to empower Keith Lockhart.
Both positional power and personal power can be very influential in empowering people like Keith Lockhart. Anne can make use of her leadership position to convince the Board’s chairman on the importance and benefits of the merger. Since Lockhart is afraid that he may lose control over the company following the merger, he should be told that the newly formed organization shall be controlled by both him and Ann and she should recommend two centres of control. In addition, the two directors should be reporting to the chairman of the board directly to ensure that none of the directors feel demoralised, or inferior to the other. The two directors have never worked together, which could be the reason for the resistance. Anne should explain to Bill that they shall both be making decision together, and that Bill’s decisions shall be considered. Anne can as well influence the structure of the organizational chart, such that it protects the interests of both parties. It would also be important for Anne to use her expertise and experience to mobilise fundraising to ensure that the organization has enough resources in terms of finances to keep it running. She should come up with strategies that keep artists from Symphony well paid. She should know how to minimize operation costs because they affect thee profits made by opera companies greatly. She should encourage the artists to freely express their artistic ideas as this is et another motivating factor. This will also help in developing the artists. Finally, Anne needs how to handle employees from the two organizations since they have very different cultures. This would mean changing the policies, procedures, among other things that have to do with culture. This way, both employees will eventually adjust to the new organizational culture, following the merger (Renee, 2006).
4. Present a potential issue with the musicians that, if not resolved, would jeopardize the continuing organizational performance.A potential issue with musicians that can jeopardise the performance of Utah Symphony/Utah Opera organization is musician strike. Many opera companies in America are facing financial crises, an issue that is affecting the way musicians are paid by these organizations. The financial crises are due to increased costs, reduced revenue, employee and musicians strike, cancellation of performances, and cancellation of contracts by musicians. The issue of a strike is very likely mainly because American musicians have strong trade unions that negotiate and bargain for better terms and conditions while signing music contracts. Strikes will definitely affect the performance of Utah Symphony and Utah Opera organization, especially at this time of merger formation. Strikes may also occur as a way to resist merging of the two companies because musicians may not understand the reason as to why the organizations are merging. Some may think that one of the organizations is on the verge of collapsing, which could be threatening their career (Orebaugh, 2010).
- Recommend how Anne could deal with the issue.
Anne can deal with this potential issue of striking musicians. For instance, she should be open to communication with the musicians’ union representatives as this is the most effective way of dealing with striking employees. The terms of negotiation ought to be friendly and Anne, being the director, should pay attention to the musicians’ grievances. Creating strong relationships with the musicians will ensure that they do not fight management over minor issues. In addition, Ann ought to state the position of the organization clearly and the bargaining should be done in good faith, with the lines of communication remaining open. In case the employees are striking in demand for better pay, Anne should explain to the union representatives the financial position of the company and the reason as to why the merger is being formed. For instance, she should explain to them that the merger will result into increased profits, but she must mention that this will require their cooperation. Following their cooperation, the increased profits will translate into their demanded salary increment. In addition, to avoid the strikes, the terms and conditions of the already signed contracts with musicians should not be changed following the merger. Above all, communication should be clear at all times to avoid misunderstandings, which usually lead to strikes. Through communication Anne, the director will inform the musicians about the consequences of strikes in an opera company. For instance, she should tell the musicians that the strike with affect both parties in that the organization will lose money due to delayed services to customers. On the other hand, the striking musicians will not be paid when they go on strike, thus losing their livelihood (Orebaugh, 2010).
5. Discuss influence tactics Anne could use to persuade the opera's full-time staff and artists under contract to endorse the merger.
Anne can use influence tactics to make full time staff and artists under contract to endorse the merger. This is where she will exercise her power as a leader/ manager to bring about change. For instance, Anne can employ rational persuasion to ensure that the staff and the musicians endorse the merger. Here, she will use logical arguments and factual evidence, as well as expert power. She will try to show them the logic behind the formation of the merger. She can, for example, tell them how profits will increase in the organization and how this will translate to their well being through better pay. Expert Power will be used be Anne because the staff and the musicians under contract respect her and appreciate her expert power and that is why she has been put on that position, that is, to offer expertise advice (Bongiorno, 2008).
The other influence tactic that Anne can apply to make the staff and the musicians under contract to accept the merger is integration. This is where she will be friendly, polite, and humble when persuading them to accept the merger. By acting friendly, the staff and the musicians will believe that the merger is being done under good faith and that both the organization and the employees benefit following the merger. This influence tactic leads to good relationships between the leader and the subordinates and other organizational members. Employees are more likely to listen to a leader who is humble because they appear to be truthful and approachable. Employing this influence tactic will enhance team work and cooperation, which will definitely lead to improved performance, thus goal achievement.
Anne can as well use inspirational appeal as an influence tactic to ensure that the staff and the musicians endorse the merger. This will be through appealing to value’s ideals and aspirations. This is where she will inspire these people to accept them merger by showing them that she endorses the merger herself. Additionally, Anne can use referent power while using inspirational appeal. Referent power is where the leader exercises power simply because her followers respect, admire, and like being identified with the leader. Here, she has to be a good role model for the staff and the musicians to respect and to like her. This way, they will be able to get influenced because they will believe that since the leader supports the merger, it must, without doubt, be a good and viable idea (Bongiorno, 2008).
References
Bongiorno, T. (2008). How to combine influence tactics: Using the elaboration likelihood model to guide sequencing of tactics. Concordia University (Canada). ProQuest Dissertations and Theses, , 93-n/a. Retrieved from http://search.proquest.com/docview/304476593?accountid=45049. (304476593).
Buenger, V. (2006). Organizational behavior 1: Essential theories of motivation and leadership. Personnel Psychology, 59(3), 757-759. Retrieved from http://search.proquest.com/docview/220149567?accountid=45049
Orebaugh, R. H. (2010). Lost in translation: Work motivation, strategy, and employee alignment within the organization's operating core. University of Maryland University College). ProQuest Dissertations and Theses, , 151-n/a. Retrieved from http://search.proquest.com/docview/751278196?accountid=45049. (751278196).
Paviglionite, J. H. (2007). The influence of organizational identity in the integration of technology firms in a business merger. Walden University). ProQuest Dissertations and Theses, , 322-322 p. Retrieved from http://search.proquest.com/docview/304769218?accountid=45049. (304769218).
Renee, D. R. (2006). The influence of organizational power on conflict dynamics. Personnel Review, 35(5), 589-603. doi: http://dx.doi.org/10.1108/00483480610682307
