The coordination problem in economics; The purpose of making efficiency in decisions!

in OCD7 months ago


The coordination problem implies that one is taking issues apart from each other, and one is sewing them to whole unity. It implies costs and waste of time with doing too much coordination, and the marketing behavior is bad, and maybe the satisfaction of the employees and the customers is getting hurt!

But what is the difference between productivity and efficiency? Put simply, productivity is the quantity of work produced by a team, business or individual. Efficiency, on the other hand, refers to the resources used to produce that work. So, the more efforts, time or raw materials required to do the work, the less efficient the process.

Coordination in economics refers to the problems associated with making diverse economic activities mesh together seamlessly to produce economic value. ... A lack of coordination results in lower benefits to the participants in the economic activity. So, coordination is taking things apart to constitute a whole unit, and the firm in question needs good enough economy, good enough marketing, and good enough strategies. And strategy is according to professor Michael E. Porter by Harvard Business School to focus on quality and prices, and to make that blending of quality and prices that you just like. And the firm profile should be properly in many instances.

So, what is the problem of coordination in economics? There are two major problems. First, you are wasting time and resources on activities to let the company be like a whole unity. And second, you are using time and costs on things that you should not, because every organization is best managed, if there is put enough energy and time on doing the right things, the things that is moving the organization forward, and this is a shadow price, and such is it with all the activities that are going on. If we can find better activities than we have today, we should use our power and time of moving the university, the college, the firm, the organization in the righ ways, and making things being published is perhaps one of the most important activities, and it is more important than ever. And in the United States, you are sacked after three months if you have not published some of your works, or something you are dwelling with in respected journals, and this is always the case many places. And we should not just be normal with giving the information that is known for the markets, but we should be innovative and creative to form the organizations and the markets in new and good and constructive ways.

In economics, coordination failure is a concept that can explain recessions through the failure of firms and other price setters to coordinate. In an economic system with multiple equilibria, coordination failure occurs when a group of firms could achieve a more desirable equilibrium but fail to because they do not coordinate their decision making.

So, what should we used time to in organizations? We should work with getting the right employees, and many time the wages are formed in negotiations with the employer and the employee, although high competence should give high salary due to what one is knowing, and we cannot accept too high costs for human resources in every wage system. So, we cannot pay higher salary than there is foundation for in the organization in question, and in the market! And the idea of having the best heads, means that you get higher salary the better you are, is interesting and exciting, and we cannot do other things than our best, and we should hope for as good wage as possible due to our competence and research background!

Please do follow if you want to keep up with my next article. Any upvotes or reblogs are hugely appreciated!

Latest article, check out :
The world inventions; The history and the case of the troughs!

Sverre Larsen

Kristiansand, Norway

Read about us? // Main page!
Latest content: Travel, Art, Article, Poetry