Sub: Merger Proposal between ‘Utah Symphony’ and ‘Utah Opera’.
A merger is a process of official union of two organizations of similar industry (horizontal merger) or organizations of two different industries (vertical merger). In other words, merger is the marriage between two organizations of human, cultural and organizational values. The process of merger has its own advantages and disadvantages.
The basic advantage of merger is that it enables the company to restructuring and strengthening the organization as firms involved in the transaction share strategies to strengthen the organization, thus eliminate weaknesses in the firm. By the way, two heads are better than one.
At the same time, one of the disadvantages of merger that is difficult to manage is the clashes of culture between two different types of business and conflict of objectives which may result in disruption of the business as the decisions are more difficult to make.
Bill Bailey, chairman of the Utah Opera Organization with concerns of future economic downfall makes an informal and cautious decision in support of the merger with Utah Symphony Orchestra. Some of the key factors that could have pushed Mr. Bailey to pursue the merger process are the Utah Opera Organization’s future financial stability and risk for decline in the years to come due to the decreasing public interest and support of the arts. Secondly, Mr. Bill was aiming to see the opera become a tier-one arts organization through merger and thereby expanding the artistic potential.
In order to gain the confidence of both the organizations and in situations with two or more alternatives or choices, Mr. Bailey will need to use Vroom’s theory of motivation. Based on the principle that motivation is a function of a person’s perceptions, thoughts, and beliefs, process theories of motivation are cognitive in nature (Kreitner, & Kinicki, 2010).
The Expectancy theory has three important elements. ‘Expectancy’, ‘Instrumentality’ and...