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Human Resources Management (HRM)



Human Resources Management (HRM)

In accordance with the book, “The Modern Firm” by John Roberts and Herbert Simon indeed convinces that coordination and motivation in of business activities is achieved predominantly through organizations instead of the market. This conclusion comes from their on business enterprise and organization formation. The two authors maintained that markets comprise various institutions or systems that cannot be manipulated easily. Hence, the motivation and coordination of markets becomes an activity that is predominantly achieved through organizations instead of the market. Ultimately, Roberts and Simon maintained that markets are mainly determined by contracts contrary to organizations that show static qualities.

Roberts and Simon categorically established that organizational economy poses the issue regarding organizations and their large control over modern economy business, and the role markets are left with to play. This may involve connecting organizations to each other and the role of connecting consumers to these organizations. Their arguments have also addressed the boundary that separates organizations from markets since they are different depending on the community and time. This argument simultaneously persuades and satisfies the question asked by both authors regarding market efficiency and coordination of demand and supply.

Remarkably, I can be able to observe from my knowledge that Roberts and Simon’s proclamation that motivation and coordination of is predominantly achieved through organizations than the market as true. For a long time, organizations have enjoyed numerous privileges considering their target customers and market base (Pride 2011, p. 32). Therefore, the challenge involves integrating these two factors in the best possible way to take advantage of the firm’s profits. Motivating the employees plays an important role at maximizing profit and coordinating the stakeholders should be maintained to ensure proper running of the business.

Giving employees rewards is a form of motivation that fosters achievement of the organization’s goals (Roberts 2004, p. 74). However, this requires a proper way of measuring the contribution of an employee towards achieving these goals. Normally, the market plays the role of dictating coordination between organizations. This form of coordination is usually based on price. As discussed above, the process of coordination in organizations depends on loyalty and rewards. Coordinating, motivating, and managing employees successfully leads to growth of the organization. Observantly, according to Herbert, most businesses are increasingly being coordinated less by markets and more by organizations.

Ultimately, organizations worldwide are trying out new methods for improving their growth prospects and current performance. In this process, they also alter their scope of business operations and their mechanisms of rewarding and motivating employees. Through the book “The Modern Firm”, Roberts asserts that there are necessary but predictable relationships that work to improve growth and performance. Successful organizations will develop patterns complement competitive strategies, elements of design, and the external environment they operate (Schein 2005, p. 64). “The Modern Firm” establishes conceptual frameworks that analyze how organizational competitive strategies interrelate with each other.

In this regard, Roberts and Simon’s school of thought is indeed relevant to me as a student of management. Primarily, management revolves around leading, planning, leading, controlling, and organizing organizational resources to achieve set goals and ambitions. Ultimately, my studies in management have a connection to Robert’s argument that that coordination and motivation in of business activities is achieved predominantly through organizations instead of the market. According to Sen (2008, p. 37), in terms of motivation, this factor plays a major role of developing incentives in employees. Coordination on the other hand ensures that various aspects of the organization are working in harmony towards achieving set goals.


Roberts, J 2004, The modern firm: organizational design for performance and growth. Oxford, Oxford University Press.

Pride, W. M., Hughes, R. J., & Kapoor, J. R 2011, Foundations of business. Australia, South-Western Cengage Learning.

Schein, E. H 2005, Organizational leadership. San Francisco, Jossey-Bass Publishers.

Sen, M 2008, Business management. Jaipur, India, Oxford Book Co.

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