In the book The Modern Firm, John Roberts argues that the primary purpose of the firm is ‘to coordinate and motivate people’s economic activity’ (p.74 **). Read the journal article by Herbert Simon (attached) , where this idea is explored in some detail.
How convincing is the proposition put forward by both these writers that coordination and motivation of business activity is achieved predominantly through organisations rather than the market and what relevance does this have for you as a student of Management?
Credit will be given for arguments made on the basis of personal experience or practical observations.
(**) Roberts, J. (2004) The modern firm: organizational design for performance and growth (Chapter 3, pp. 74–117). Oxford: Oxford University Press.
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