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9 December, 14:49

Zena works in a large brokerage firm as a financial analyst with specialized knowledge about municipal bonds. Knowledge about municipal bonds is quite valuable to the firm and its clients. However, Zena is unable to raise her salary above other financial analysts because several other people in the firm also have expertise in municipal bonds. Which contingency seems to limit Zena’s power to get a pay raise above her coworkers?

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  1. 9 December, 17:10
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    Answer: Substitutability

    Explanation: Substitutability seems to be the limiting factor to Zena's power in getting a pay raise over her co-workers as it refers to the availability of alternatives. This is due to the fact that she is substitutable (capable of being used as a substitute or an alternative) as she is just one among the several other analysts with knowledge about municipal bonds which diminishes her power. Therefore, under the condition of substitutability, Zena's power cannot be translated into influence in her organization as it plays a role in determining the extent to which she can leverage the power she has to make things happen within the brokerage firm.
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