Describe the Orchestra's Pay Structure in Terms of Levels, Differentials, and Job- or Person-Based Approach

1. Describe the orchestra's pay structure in terms of levels, differentials, and job- or person-based approach.

There are many pay levels and large differentials in pay between each pay level that is shown in the orchestra's pay structure along with the majority of the orchestra having a principle instrument player. With that in mind, the orchestra resembles a hierarchical type of pay structure, which according to our text "hierarchical nature: the number of levels and reporting relationships."(Milkovich) I am assuming the number of musicians that would play in the orchestra depends on the demand of such services, thus creating a supply and demand type of pay structure. In smaller towns where there is less need for an orchestra, the pay may be much smaller compared to larger cities. The Los Angeles Philharmonic has 103 instrumentalists and pays approximately $148,720 per year until September 2013, including rehearsals and performances, while the Detroit Symphony has 83 instrumentalists and currently pays $80,880 per year for the 2012-2013 year. (Locsin)

Since there is such a large difference in pay among the instrumentalists, the relative importance of some of the instruments in comparison to other instruments may lead to higher pay. This would mean that the orchestra is more people based than job based. "A person-based structure shift the focus to the employee: the skills, knowledge, or competencies the employee possesses." (Milkovich) An example is that the lowest paid Violin II instrumentalist receives $1,178 and the highest paid Violin II instrumentalist is paid $2,483, which is less than half of the pay of the highest paid Violin II instrumentalist.

2. Discuss what factors may explain the structure. Why does violinist I receive more than the oboist and trombonist? Why does the principle trumpet player earn more than the principle cellist and clarinetist but less than the principle viola and flute players? What explains these differences? Does the relative supply versus the demand for violinists compare to the supply versus the demand of the trombonists? Is it that violins play more notes?

There are many factors that may explain the structure of the symphony which include external factors, organization factors, and internal structure. The external factors that explain the structure are the economic forces, supply and demand of top instrumentalists, and the differences in location. The organizational factors include strategy, human capital, employee working conditions, and the cost implications that come from performing. Internal structure includes differentials of all the instrumentalists, level of performance of each, and the criteria for each performer. (Milkovich)

The reason why a violinist I receives more pay than the oboist and trombonist is that importance of the instrument in the orchestra as well as the amount of work that is performed is