Shark tank
- by jenna richardson
The television show Shark Tank gives hopeful entrepreneurs the chance to make their dreams come true and become successful business people. These entrepreneurs must first try to convince five tough, multi-millionaire moguls to pay with their own hard-earned cash and give them the funding they need to startup their ideas and companies. In these hard economic times it is difficult for most people to start their own company with funding from banks or investors if their idea or company can be stated as risky. These hopeful entrepreneurs want to start a business with anything from a brand new invention, to starting their own clothing line, to making food, but if most don’t receive the funding from the “sharks” they won’t be able to go through with their company. Organizational behavior concepts and theories appear throughout the show including bases of power, ethical ideas, and negotiation.
Many organizational behavior concepts and theories are involved throughout the four seasons of the show. As owner of their own businesses, the five investors that appear each show hold a great deal of power in the work force. They are everyone’s boss since they are the owners so it gives them authority and power. A base of power that the investors hold is legitimate power. This is when a person receives power due to their position in the hierarchy of an organization (Raven, 1965). As the owner of their companies, they can control anything regarding their businesses. They have the authority to hire, fire, manage, and direct anyone within their employee base. These investors also hold expert power, which is the influence that someone has based on expertise, special skills, and knowledge (D. Hickson, 1971). Being the owners of multi-million dollar companies they are very experienced, and knowledgeable in the area that they have succeeded in, which in return gives them authority and power. Their employees and business partners trust what they have to say due to their position.
Another organizational behavior concept demonstrated in Shark Tank is the idea of ethics. Ethics is described as the study of moral values or principles that guide our behavior and inform us whether actions are right or wrong (G. F. Cavanagh, 1981). Some hopeful entrepreneurs have ideas or start companies that would not be considered ethical to most people. These ideas or companies would generally be started because people will do anything even if it means interfering with their ethics to make money. An example of this is when an entrepreneur came up with the idea of a hologram bracelet called Power Balance. It was said to use holographic technology to resonate and react with the natural energy field of the body, which would increase sporting ability. This idea was a scam to get people’s money and had no proof at all that this bracelet would actually enhance any kind of ability to do better with sports. This is an example of an unethical idea, which was started only with the intention of making money.
Negotiation is a concept from organizational behavior that appears throughout Shark Tank. The hopeful entrepreneurs have a set price to sell a portion of their company for in return for capital. Evidently the entrepreneurs will set their company at a high price in order to receive more capital for less equity in their company. This is when the investors come into the situation to analyze whether or not they think the companies are worth as much as the owners say they are. This is when negotiation comes in play. Bargaining strategies are used throughout the negotiation process in the show. Integrative bargaining is an assumption that there is one or more settlement that can create a win-win solution (J. R. Curhan, 2007). This happens when the investors and the entrepreneurs negotiate a deal that they both think is fair. The entrepreneurs get a set amount of money and the investors now own a portion of the company. Distributive bargaining, which is a negotiating strategy that operates under a win-lose condition is not really demonstrated throughout the show (J. C. Magee, 2007). If the investors are not satisfied with the deal being made then they will not make the deal. Same thing happens with the entrepreneurs. If the investors make an offer that they do not think is reasonable or fair then they can say no to the offer and move on. If a deal is made then there is usually a bargaining zone in between the investor’s resistance point and the entrepreneur’s resistance point in which they were able to make an agreement from.
The concepts and theories dealing with organizational behavior that are displayed throughout Shark Tank include bases of power, ethical ideas and decisions, and negotiation. The investors hold two bases of power including legitimate power and expert power. This gives them authority and trust due to their positions. Some entrepreneurs have unethical ideas and companies in order to make money off of it. An example of this is the Power Balance bracelet introduced in Shark Tank. Lastly, negotiation plays an important role in Shark Tank. Both people of the negotiation want to come out happy which is integrative bargaining and when a deal is made it is usually this case.
Many organizational behavior concepts and theories are involved throughout the four seasons of the show. As owner of their own businesses, the five investors that appear each show hold a great deal of power in the work force. They are everyone’s boss since they are the owners so it gives them authority and power. A base of power that the investors hold is legitimate power. This is when a person receives power due to their position in the hierarchy of an organization (Raven, 1965). As the owner of their companies, they can control anything regarding their businesses. They have the authority to hire, fire, manage, and direct anyone within their employee base. These investors also hold expert power, which is the influence that someone has based on expertise, special skills, and knowledge (D. Hickson, 1971). Being the owners of multi-million dollar companies they are very experienced, and knowledgeable in the area that they have succeeded in, which in return gives them authority and power. Their employees and business partners trust what they have to say due to their position.
Another organizational behavior concept demonstrated in Shark Tank is the idea of ethics. Ethics is described as the study of moral values or principles that guide our behavior and inform us whether actions are right or wrong (G. F. Cavanagh, 1981). Some hopeful entrepreneurs have ideas or start companies that would not be considered ethical to most people. These ideas or companies would generally be started because people will do anything even if it means interfering with their ethics to make money. An example of this is when an entrepreneur came up with the idea of a hologram bracelet called Power Balance. It was said to use holographic technology to resonate and react with the natural energy field of the body, which would increase sporting ability. This idea was a scam to get people’s money and had no proof at all that this bracelet would actually enhance any kind of ability to do better with sports. This is an example of an unethical idea, which was started only with the intention of making money.
Negotiation is a concept from organizational behavior that appears throughout Shark Tank. The hopeful entrepreneurs have a set price to sell a portion of their company for in return for capital. Evidently the entrepreneurs will set their company at a high price in order to receive more capital for less equity in their company. This is when the investors come into the situation to analyze whether or not they think the companies are worth as much as the owners say they are. This is when negotiation comes in play. Bargaining strategies are used throughout the negotiation process in the show. Integrative bargaining is an assumption that there is one or more settlement that can create a win-win solution (J. R. Curhan, 2007). This happens when the investors and the entrepreneurs negotiate a deal that they both think is fair. The entrepreneurs get a set amount of money and the investors now own a portion of the company. Distributive bargaining, which is a negotiating strategy that operates under a win-lose condition is not really demonstrated throughout the show (J. C. Magee, 2007). If the investors are not satisfied with the deal being made then they will not make the deal. Same thing happens with the entrepreneurs. If the investors make an offer that they do not think is reasonable or fair then they can say no to the offer and move on. If a deal is made then there is usually a bargaining zone in between the investor’s resistance point and the entrepreneur’s resistance point in which they were able to make an agreement from.
The concepts and theories dealing with organizational behavior that are displayed throughout Shark Tank include bases of power, ethical ideas and decisions, and negotiation. The investors hold two bases of power including legitimate power and expert power. This gives them authority and trust due to their positions. Some entrepreneurs have unethical ideas and companies in order to make money off of it. An example of this is the Power Balance bracelet introduced in Shark Tank. Lastly, negotiation plays an important role in Shark Tank. Both people of the negotiation want to come out happy which is integrative bargaining and when a deal is made it is usually this case.