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The General Dependency Postulate

The greater B’s dependency on A, the greater the power A has over B.
When you possess anything that others require but that you alone control, you make them dependent upon you and, therefore, you gain power over them.
Dependency, then, is inversely proportional to the alternative sources of supply.
This is why most organizations develop multiple suppliers rather than using just one.
It also explains why so many of us aspire to financial independence.
What Creates Dependency?
Importance
To create dependency, the thing(s) you control must be considered important.
Organizations actively seek to avoid uncertainty.
Therefore, those individuals or groups who can absorb an organization’s uncertainty will be perceived as controlling an important resource.
Scarcity
A resource needs to be perceived as scarce to create dependency.
Low-ranking members in an organization with important knowledge not available to high-ranking members gain power over the high-ranking members.
The scarcity-dependency relationship can further be seen in the power of occupational categories.
Individuals in occupations in which the supply of personnel is low relative to demand can negotiate compensation and benefit packages, which are far more attractive than those in professions where there is an abundance of candidates.

Full Answer Section

- The aspiration for financial independence is a personal example of this principle: reducing dependence on a single income source or employer to gain personal power/autonomy.
What Creates Dependency? (Key Factors)
- Importance:
  - The resource controlled must be valued or needed. If what A controls isn't important to B, B won't be dependent.
  - The text connects importance to uncertainty reduction. In an organizational context, individuals or groups who can reduce uncertainty (e.g., by possessing critical knowledge, foresight, or problem-solving abilities) are seen as controlling important resources, thus gaining power.
- Scarcity:
  - The resource must be difficult to obtain elsewhere. If something is abundant, even if important, it doesn't create significant dependency on any single provider.
  - The example of low-ranking members with unique knowledge gaining power over high-ranking members perfectly illustrates this. Their knowledge is scarce within that specific context, making them powerful.
  - The example of occupational categories (low supply of personnel relative to demand) further reinforces this. Highly skilled professionals in niche fields (e.g., specialized surgeons, AI engineers) often command higher compensation and more attractive terms because their skills are scarce and important.

In summary, the text provides a robust framework for understanding power dynamics based on dependency. It emphasizes that power is not inherent but is derived from controlling resources that are both important and scarce to others. This framework is applicable across various contexts, from interpersonal relationships to organizational structures and even economic markets.

Sample Answer

The provided text clearly and concisely explains the concept of dependency as the foundation of power. It outlines how one entity (A) gains power over another (B) when B is reliant on A for something crucial that A uniquely controls.

Here's a breakdown of the key points and how they relate to the core idea:

Core Principle: Greater Dependency = Greater Power
- This is the central thesis. If B needs A more than A needs B, A holds the power.
Mechanism of Power: Control of Desired but Unique Resources
- The text elaborates on how dependency is created: by possessing something that others require but that only you control. This highlights the importance of exclusivity in resource control.
Dependency and Alternative Sources (Inverse Proportionality)
- This is a crucial insight. The less dependent B is on A (because B has other options), the less power A has. This explains common organizational strategies like having multiple suppliers to mitigate risk and reduce reliance on any single one.