New institutionalism
3 important questions on New institutionalism
Which two types of isomorphism are there?
1 Competitive isomorphism assumes a system of rationality which emphasizes market competition, niche change and fitness measures, and is most relevant where free and open competition exist.
2 Institutional isomorphism.
2 Institutional isomorphism.
Which 2 institutional mechanisms influence decision making in organizations according to the Institutional isomorphism?
1 Coercive mechanisms, which stem from political influence and the problem of legitimacy. The include influence of the social partners, the labour legislation and the government
2 Mimetic mechanisms, which result from standard responses to uncertainty, of fashionable fads (rages) in the field of management.
3 Normative mechanisms, which are associated with professionalization. They refer to the relation between mangement policies and the background of employees in term of educational level/experience/networks etc.
--> These 3 institutional mechanisms lead tot HRM homogeneity across organizations.
2 Mimetic mechanisms, which result from standard responses to uncertainty, of fashionable fads (rages) in the field of management.
3 Normative mechanisms, which are associated with professionalization. They refer to the relation between mangement policies and the background of employees in term of educational level/experience/networks etc.
--> These 3 institutional mechanisms lead tot HRM homogeneity across organizations.
Why is there a tensions between the RBV and the institutional theory? (Paauwe)
The RBV focuses on explanations for firm heterogenity in order to be able to account for differences in performance. NI aims at explaining isomorphism (firm homogeneity). Another difference is linked to rationality assumptions. The RBV build on the economic rationality assumption of human behavior, while NI emphasizes the normative rationality behind decision making.
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