Wednesday, January 13, 2010

Bargaining Power: A Charles Darwin Prospective

Ø “Bargaining Power” in terms of individual-organizational relationship

In this fast moving world where there is rampant cut throat competition all around, one needs to have more than just power to sustain. Darwin's theory of evolution said as many more individuals of each species are born than can possibly survive; and as, consequently, there is a frequently recurring struggle for existence, it follows that any being, if it vary however slightly in any manner profitable to itself, under the complex and sometimes varying conditions of life, will have a better chance of surviving, and thus be naturally selected. From the strong principle of inheritance, any selected variety will tend to propagate its new and modified form.

Source: http://en.wikipedia.org/wiki/Charles_Darwin

Now deducing our conclusions from afore mentioned hypothesis:

· As many more individual of each species are born than can possibly survive;

With growing competition, where in both the number of employers as well as employees is increasing, there is more of options available with each party but of course depending upon the market scenario. These scenarios only form the foundation stone of the bargaining power. It basically assigns a weight to one’s position and the ability to have things in his/her own way. But as already stated, it all depends upon the market. So not all employers who enter into the market sustain and neither are the employees. So it says that of the many few can only manage to survive.

· There is a frequently recurring struggle for existence;

This says that in order to reach to the bargaining position one must groom itself so as to reach to that particular position to be able to bargain. Speaking of which, if an employee struggles hard and acquires a particular skill set his presence in the company becomes indispensable and thus the employee is in a bargaining position. On the other hand if the employer is able to work hard and put his company in the “wanna – be” list naturally the employers say becomes more effective. Microsoft as we all know is one such elite company which enjoys this position.

· Any being, if it is vary however slightly in any profitable manner profitable to itself, under the complex and sometimes varying conditions of life.

From here we can deduce that all individual work towards an ultimate goal, i.e. profit making and therefore in any kind of negotiation the profit of both the parties is kept in mind. But when it comes to non-negotiable offer, here one party is solely in a much stronger position and exerts its decision on the other party. The other party in order to maintain healthy relationship may have to even agree. In the case of Darrel Hair, he have undergone quite hardship to reach to the respectable position that he is in today. And now when he is in controversy, it is due to this respect that he has over the years that he is able to make such non-negotiable offer to the ICC which they are considering. Had it been some other newbie, it would not have been the case.

· Will have a better chance of surviving, and thus be naturally selected.

Even Darwin’s theory support the above mentioned argument that once one have undergone hardship and have acquired the desired skill set, it all boils down to your position and respect. So with such background success is sure to kiss your way and with success comes recognition and such recognition earns you the bargaining power. In an animal kingdom when a living being is able to withstand the various complex and varying environment it is able to survive and thus becomes the one to get naturally selected. So the one who is able to earn that power is able to chair through any negotiation making it in his/her favor, be it the employer or the employee.

· From the strong principle of inheritance, any selected variety will tend to propagate its new and modified form.

So this brings us to a final deduction from the Charles Darwin theory of evolution. So when one is in a meritorious position he/she definitely try to make the most out of it. If an individual is in that position, a non-negotiable offer would be definitely an advantage. Same is in case of companies for the employees who are not that important to the company. Here when Darrel Hair issues such non-negotiable offer threatening that his demands be fulfilled or else he will rejoin his job is highlighting the vulnerable position the ICC is in and the advantageous position Darrel is in even after committing a blunder.

So the basic theme of the above discussion was that a comparison was carried out between Charles Darwin’s theory of evolution and the current Market Scenario. It clearly states to earn the position to be able to issue such non negotiable offer the individual needs to have earned:

ü Desired Skill set

ü Favorable Market Condition

ü Vulnerability of the Employer

ü Past experiences and successes

ü Position of authority and responsibility

Ø Would you be able to make such offers at any point of time in your career.

Here I would first narrate my engineering day experience. In my pre final year when the companies visited the campus of recruitment I was selected by an IT giant and it was not just me, there were other 310 who got through. It was definitely one of the major recruiters and the college was bound to maintain good relations with the company. So it was one position where we had to listen to any such demands made by the company.
And one such demand was having the training conducted even before joining and that too without any pay. And we had to complete the training while simultaneously studying the course curriculum.

But in future I would like to be on the other side of the table. I would want that even my wants are considered and seriously worked for. Having gain the sufficient knowledge and expertise I am sure with the added hard work that I will put in I will definitely reach that position. Such offer would not just ensure a progressive career path but also bring in higher returns. But this will only happen if I become an asset to the company and my presence become indispensable. All it takes to become successful is loyalty and hardwork.

Ø As an employer what would you have done to tackle the situation

I am sure if the employee would have reached that position he would have put in many years of sincere effort and hard work. Incase of Darrel Hair, he was definitely an asset but since his association would still bring in more controversy its good to get rid of him. I am sure if he were a sensible guy a round table conference and continuous counseling would urge him to relax some of the claw posed by him. But in general if an employee is giving such offers, I would rate the employee’s relative worth and then judge the viability of his demand and then make a decision.

Thank You

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