Rjft Organizational Management Task 2
Organizational Management RJFT2
Task 2
A1. The Utah Symphony was recognized as a Group II orchestra. Group I and Group II are distinguished by the endowment amount and level of annual expenditures. For the year of 2001-2002, the average endowment for Group I orchestras was around $76 million and $8.8 million for Group II orchestras. The Utah Symphony came in just shy of $12.2 million in 2000-2001 and was projected to be upwards of $13.7 million for 2001-2002. That being said, the Utah Symphony was considered to be at the top end of Group II symphony orchestras in the United States (Ager & Delong, 2005). However, even with these strengths within the symphony, prior to the proposed merger of the two organizations, the Utah Symphony’s financial state was declining. There were several factors due to the weak financial state. The musicians were part of a union, which negotiated a contract requiring high salaries, benefits and annual pay increases, which would cause the organizations expenses to increase. So, while revenue was projected to increase, this was offset by the increase in expenses. The cash balance was $116,308 in fiscal year 2000-2001 and projected at $2,042 for the following year, yet another financial weakness. In order to ensure a successful start of the merger, Anne would need to would need to come up with a plan. She could start by addressing the musician’s salaries. By referring to the board, as well as union leaders, Anne can learn about the requests specifications of the last negotiation. When presenting a new contract, she can influence the musicians to either take a lower wage or not to take a pay increase by showing them the income statement and explaining that the life of the organization is dependent on cutting costs and increasing revenue. Through this, she can show how the organization will not be able to operate at a surplus if expenses continue to increase, offsetting the revenue earned. Eliminating pay raises could be
Task 2
A1. The Utah Symphony was recognized as a Group II orchestra. Group I and Group II are distinguished by the endowment amount and level of annual expenditures. For the year of 2001-2002, the average endowment for Group I orchestras was around $76 million and $8.8 million for Group II orchestras. The Utah Symphony came in just shy of $12.2 million in 2000-2001 and was projected to be upwards of $13.7 million for 2001-2002. That being said, the Utah Symphony was considered to be at the top end of Group II symphony orchestras in the United States (Ager & Delong, 2005). However, even with these strengths within the symphony, prior to the proposed merger of the two organizations, the Utah Symphony’s financial state was declining. There were several factors due to the weak financial state. The musicians were part of a union, which negotiated a contract requiring high salaries, benefits and annual pay increases, which would cause the organizations expenses to increase. So, while revenue was projected to increase, this was offset by the increase in expenses. The cash balance was $116,308 in fiscal year 2000-2001 and projected at $2,042 for the following year, yet another financial weakness. In order to ensure a successful start of the merger, Anne would need to would need to come up with a plan. She could start by addressing the musician’s salaries. By referring to the board, as well as union leaders, Anne can learn about the requests specifications of the last negotiation. When presenting a new contract, she can influence the musicians to either take a lower wage or not to take a pay increase by showing them the income statement and explaining that the life of the organization is dependent on cutting costs and increasing revenue. Through this, she can show how the organization will not be able to operate at a surplus if expenses continue to increase, offsetting the revenue earned. Eliminating pay raises could be
References: Ager, David L. & Delong, Thomas J., “Utah Symphony and Utah Opera: A Merger Proposal” August 8, 2005, Harvard Business Review Kelly, The Types of Organizational Culture, May 4, 2010 retrieved March 10, 2013 from http://blorgtheory.com/2010/05/04/the-types-of-organizational-culture/