INSTITUTIONAL THEORY

6 important questions on INSTITUTIONAL THEORY

Philip Selznick vision of institutions

- Organizations are formally rational, but in actual practice they are greatly influenced by the informal and social aspects of organizations”
- Organizations had the following features:
-- goal-directed;
-- self-maintaining internally and with respect to the environment;
-- purposive rationality

John Meyer & Brian Rowan vision of organizations (institutional theory)

- modern organizations are enforced by public opinion, views of important constituents, social prestige, [and] laws” and represent “prefabricated formulae” that certify the organization as rational and modern.

How does Scott defined inistitutions

Scott defined institutions as
- multifaceted - veelzijdige
- durable social structures - duurzame sociale structuren
- made up of symbolic elements, social activities, and material resources.
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Three Pillars of Institutions according to Scott

- Regulative - Rules
- Normative - Certification
- Cultural-Cognitive -Common beliefs

Why do organizations need legitimacy

• Taking actions that conform to prevailing norms and expectations
• The appearance of being strategically correct
Management will appear to be rational and providers of resources will feel comfortable with the organization’s actions

What is embedded agency

  • how may actors enact changes to the context by which they are shaped

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