he current economic model, and also society, is based on organizations. Business organizations, in particular, are in the center of capitalism production system. From Adam Smith’s division of labor to Peter Drucker’s knowledge workers, management theory evolved seeking to understand why people work better together, and how the grouping process occurs. Bradshaw (1998: 16) stated that in essence, “all business is trade”. Following the chain of demand-offer and “make-or-buy” decisions, it seems to be that market governs the production activity. But, as observed by Simon (1995: 273), “a large part of the behavior of the system now takes place inside the skins of firms, and does not consist just of market exchanges”. Roberts (2005: 74) stated that firms are created ‘to coordinate and motivate people’s economic activity’. How this process of coordination and motivation occurs?
Permalink