Problem Solving Application Symphony Orchestras on Strike The rarified world of classical music is often per- switched to defined contribution plans for their ceived as calm, even staid, and above the hassles employees and thus shifted the investment risk to of the workaday world. But with the cost of produc- workers as well. But Chicago's defined-benefit plan ing performances rising and ticket sales and donor "has been the hallmark of the orchestra's benefits support slumping in many markets, this picture is package and those of other leading orchestras) for far from the truth. In recent years musicians of over 50 years," says a member of the musicians more than one symphony Orchestra have gone on negotiating committee, and members want to keep strike for better pay and other benefits. Among the it that way,65 latest are the players of the Chicago Symphony While defined-benefit plans, in which benefits Orchestra, one of the top (and best-paid) U.S. clas- are essentially guaranteed, are still common in sical ensembles. The musicians' union had been major U.S. orchestras, many such plans are under- negotiating a new contract for almost a year when funded, putting benefits for both current and future players recently began picketing Orchestra Hall in retirees in jeopardy. Management says its current Chicago in an attempt to hang on to disputed offer will "put the musicians in as good if not a better employment benefits, including their prized state upon their retirements," but Chicago's players defined-benefit pension plan. counter that attracting and retaining world-class The orchestra's management says the cost of musicians will grow ever more difficult "if our bene- maintaining this retirement benefit has skyrocketed, fits continue to fall."66 Meanwhile, the orchestra's making it unsustainable for the group's future, and famed director Ricardo Muti urged management to proposes substituting a less expensive defined- consider the welfare of the musicians, even visiting contribution plan. This would follow the example of the picket line, though some performances had to organizations in many other industries, which have be canceled while talks continued.67 Apply the 3-Step Problem Solving Approach Step 1: Define the problem in this case. Step 2: Identify the cause of the problem. Do the parties featured in this case use the principles of expectancy theory? Step 3: Make a recommendation to the orchestra's management. Should the musicians be allowed to keep their defined benefit pension plan