General economic thinking considerably influences Market Based Management (MBM). Opportunity-cost, marginal analysis,\ncreative-destruction and more, are rooted in economic thought. However, what about central planning? In the\nââ?¬Å?Use of Knowledge in Societyââ?¬Â Hayek was careful to distinguish between ââ?¬Å?central planningââ?¬Â by the government, which\nhe thought was damaging and decentralized planning by individuals and organizations, which led to advantageous\ncompetition. The Market Based Management method tries to find ways to adapt the principles of a free society and\nmarket economy to advance management practice in organizations. Hayek argues that given the heavy oratorical\nemphasis on markets, it should come as no wonder that Market Based Management ideas have attracted attention from\nindividuals in the varied field of organizational economics. Contrariwise, some academics in management and other\nsocial sciences express doubts, precisely because they perceive all the market based talk to be a form of monetary imperialism\nthat seeks to reduce all human behavior to hyper-rational self-interested enhancing.
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