Coordination Problem - Direction, Contemporary Management Video Lecture | Contemporary Management - B Com

yuichi is agin victorious person all
competition while the people came early
were loud and stayed late they now need
to go home as with all games people
parked throughout the campus Summa found
surface parking while others are in one
of the campus garages and this instance
everyone has the same goal to get out of
the garage quickly and safely but how do
we do this an effort to get everyone out
quickly and safely the garage is
coordinated that everyone gets out by
turning left through the garage while
this may be a bit slow for some through
a coordinated effort is the most
efficient way to do it and the drivers
wait their turn to exit some become
frustrated well I'll just see if they
can find a quicker way out this driver
gets an idea if he turns right at
certain intersections he can get ahead
of the traffic and get out faster while
this may not seriously hamper the
exiting process only a handful of
drivers turn right it becomes a
catastrophe if a large number of drivers
choose this as you can see several
drivers have decided to defect from the
established guidelines the situation is
worse instead of moving slowly but
consistently there's no movement at all
the traffic has come to actions such as
these are great examples of the
coordination problem
a situation in which a group of people
want to coordinate and people disagree
over which way is best the larger the
group the greater the probability that
individuals will defect from the
coordinated effort in an attempt to
advance their own personal interest as
we can see with the driver in this
example one way to prevent defectors is
to set up safeguards against defectors
such as the referee in this example the
presence of the referee prevents
individuals from defecting by
establishing safety and reducing
defectors the drivers are able to more
effectively exit the garage while having
safeguards to be seen as inhibiting for
individuals it is helpful for the group
to accomplish its goals but safeguards
in place defection is limited and the
group is able to attain its goals in
this example it is leaving the parking
structure in a safe and efficient manner
even though the driver in our example
was not able to take the shortcut he
wanted he along with the other drivers
are able to exit the structures safe so
they can enjoy another UT victory