A1. Bill Bailey
Adam’s Equity Theory is a model of motivation which basically states that employees will perform at a more productive rate if they feel that they are being treated fairly (Kreitner & Kinicki, 2010). Equity is achieved when a worker perceives their reward for their amount of work to be equal to that of a relevant worker. Negative inequity is perceived by the employee when the relevant worker receives greater rewards for the same amount of work. Positive inequity is perceived by the employee when the relevant worker receives fewer rewards for the same amount of work (Kreitner & Kinicki, 2010).
Bill Bailey is opposing the merger of his opera with the Utah Symphony for numerous reasons. Mr. Bailey should point out to the board that, due to the opera’s reserve fund, they are a financially sound organization. The opera has been operating a financially responsible organization while the symphony has not. It will be perceived by the opera employees that they are being punished for the shortcomings of the symphony. The symphony is a larger organization and it will most likely be viewed that they are using the smaller organizations, the opera, funds to save the symphony. This will result in a perception, by opera personnel, of negative inequity since the symphony seemingly mismanaged their funds but are gaining the same rewards.
The opera has also operated in a responsible manner by constantly adjusting the size of or eliminating projects as needed to remain financially viable. The symphony has not performed in this manner. It will most likely be perceived by the opera staff that they are again being punished for the inadequacies of the symphony. Again, perceptions by opera personnel of negative inequity will result since the symphony mismanaged their operations but are gaining the same rewards.
The opera has been enticed with the thought of being able to be part of a higher tier organization. This may be true.