Okay, i'm reviewing some of my notes from my management policy class. My professor gives some of the most awkward examples sometimes when he's trying to describe or analyse a business case. One thing we ran by was the idea of bargaining power; weather its between your business and your buyers (end-users), or between you and your suppliers (ppl who feed resources into your business). The interesting issue here was, how one of these 3 parties (buyer/your company/suppliers) can have "power" to control one's behavior over the other. Let me expand. Suppose any company, say Starbucks - they sell coffee (duhhh!). Okay, buyers = ppl who buy the coffee, suppliers = ppl who give you beans and flavoring for you to make your coffee. We question, who has more power to control the behavior of the other? Answer, it lies in the ability of one of the parties to switch over the other. Implications? If one had the power to control the behavior over the other, then obviously one of the parties loses out on something, and the other doesn't lose anything. So b/w Starbucks and their supplier (those bean ppl), who has more power? who has the greater ability to switch? If those bean growers decide to sell their beans elsewhere, starbucks loses out; but if Starbucks chooses to import beans from another farmer, then Starbucks has the greater switching power. It is a simple and structured concept almost anyone can comprehend, and its, what the title of this blog says, power-dependency theory.
Well, now that i've mentioned that, what the hell does this have to do with me? This is quite interesting actually. Well silly me, having the lowest attention span in class, my mind, my thoughts drifting out of the classroom discussion, I think, how does this apply in our personal life? I realize now that this is something common everywhere. For example, my mother, she's a hardcore bargainer when it comes to speaking with those chinese store owners like at Pacific mall, or First Markahm. Bargaining is about gettin a deal. What did my mom do? There was this one day I wanted these Oakley shades. My mom suggested going to this optical place at First Markham. After researching this product for awhile, I knew exactly what I wanted. Blue W-Square 2.0 glasses. So my mom speaks to the lady there, and tries to land a deal. Ya'll know how the process goes, one person tries to keep asking for a better prices, while the other seems hesitant and tries their best to make money as much as possible. In the end, my mom managed to bargain down to 100 bux off the regular price. Her strategy? At the right moment, my mom just said, "ngor day jow ah!" - the equivalent to "Lets get outta here!", because we aint' gettin a deal. So my mom motions towards the exit, and i'm just sittin there, "crap, i want them". Reluctantly, I stood up and ready to leave, and at the last moment: "Wait!" - said the store person. My mom spoke a bit more jibberish with them, and boom, $100 off! All I could say is, woah! Okay, in this scenario, my mom made it completely obvious that she exhibited the greater power to switch.
Hmm, well it was all obvious wasn't it? All that was simple logic, and probably most of us do it anyway. Any simple person could snag a deal like that on the street any day. I suppose the next thing to move onto, where else can this power-dependency shit apply? I realize its a concept that exists everywhere, in all faucets of our lives. How about b/w ppl? how bout leaders? the government, the prime-minister - they are people of great power, do we depend on them? I say no! it's not like they can switch us for someone else, but I suppose we as voters have more power over them in a sense (definately in North America atleast). How bout individuals? Personal relationships. Between family? Ugh, bad thought. The most surprising example came from my professor, between boyfriend and girlfriend.. LOL. Might sound unethical, but who'd have more power? who could have more switching power over the other? I guess I realize this is a concept that i've been a victim of in the past, and it just makes total sense. I think everyone in our class had come to a genuine realization of this concept when the prof mentioned it. It's interesting how such a theory can affect all of us in many ways. Can anyone think of more examples?