Institutional Theory : The And Powell 's The Iron Cage Revisited : Institutional Isomorphism And Collective Rationality

Most of our organizational life is scripted and the members play their roles accordingly with approved dress code within the rules of conduct. This theory exhibits how some organizations keep up perception of innovativeness and confidence in management rather than how an organization is doing and how their performance can be effective. This concept makes me think of the cultural aspect of my organization. Within my organization, the administrators worry more about keeping up appearance of being considered successful organizations rather

The great strong standing United States of America is known today as one of the most power houses in the world. The principles she was founded on included on freedom and prosperity for some. In the founding years of an entity the most work is done in laying down the foundation. America chose to complete the task of building a beautiful nation of freedom and prosperity through the exploitation of slaves. Today, blacks in America are still healing from the scars that slavery in America has written on African American DNA. The fruits of slavery produced the internalization of negative: mentalities, inferiority of identity, and images in black media.

Isomorphism occurs when firms conform to taken-for granted ways of doing thing (Washington and Patterson, 2011). Isomorphism refers to the degree to which organisations conform to certain norms and practices established and legitimated by an environment which over time results in homogeneity of rules and practices across different organisations within a similar environment. This process of homogenisation is known as isomorphism (DiMaggio and Powell, 1983). As

Following Bolman and Deal’s organizational structure and human resource frames, the third frame could arguably be the most impacting on an organizations employee’s sight and reference regarding their organization’s culture. Symbolic framing views organizations as theaters (Bolman & Deal, 2008; 2015), where its employees are acting out their duties and responsibilities grounded in the organization’s myths, values, ceremonies and rituals (Bolman & Deal, 2008; Henderson, 2015). In this regard, organizations are often judged more on their performance in a theatrical sense, than the product outcomes themselves, as the performance creates alignment in its employees (Smith, 2012). In the structural frame, we understood that organizations obtain efficiency through proper alignment in departmental and communication lines, identifying excess in order to streamlining processes. The human resource frame encouraged us to conceptualize that organizations achieve success by focusing on who is in the right or wrong position and acknowledging the needs of the employees, certifying that both employee and organizational needs should be met to promote organizational success. The symbolic frame challenges us to view the organization from a different perspective, looking deeper into the organization’s culture as the answer for alignment and unity toward a common goal. Symbolic framing aims to capture the hearts and minds of all those involved in the organization, as symbols are often the

Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery

An organization’s external environment is terribly important and must be studied and understood for the organization to truly succeed. Through such study and understanding, a manager would be able “mitigate threats and leverage opportunities” that are caused by the six segments identified as macro-level external forces: (1) political, (2) economic, (3) sociocultural, (4) technological, (5) ecological, and (6) legal (Rothaermel, 2013, pp. 56-57). Since the manager’s decisions, or firm effects, have a greater impact than those external forces mentioned only when the manager accounts for them and builds a strategy around them, the manager must be aware of and understand these forces to be

The mission defines the organization’s purpose, values, and core goals, providing the framework for all other plans. It is simple, vivid and compelling so that the employees from the janitor to the CEO, from the customers to investors can easily understand.

Open system: the perspective views organizations as complex organisms that “live” within an external environment.

The natural and the rational perspectives ignored the element of the external environment with the assumption that organizations existed as closed systems. On the contrary, the Open systems approach incorporates the aspect of the external factors that have an effect on the organization (Hardy, 1983, p. 341). The open systems perspective depict that organizations exist as a jumbled collection of interrelated systems linked by activities of the participants that are brought together by various institutional environments (Scott, 2003).

“Beliefs, values and ideology are at the heart of organisations. Individuals hold certain ideas and value-preferences which influence how they behave and how they view the behaviour of other members. These norms become shared

Specific societal needs and accountability measures have strongly influenced changes in organizations throughout the 20th and the 21st centuries. Societal needs are dynamic and ever-changing and, as a result, the push organization to find new ways of meeting their demand (Kezar et al, 2011). For instance, employees and customers no longer appreciate being the last to know about new research and development,

Assumptions of Organizational Economics Theory: organizations are superior to markets in managing complex and uncertain economic exchanges because they reduce the cost of transactions; different approaches to organizational economies share a common attention to explaining the emergence and expansion of organizations, hierarchies,

However, when looking at organizations and the degree of isomorphism they have, it is hard to say if an organization that has a high degree of isomorphism automatically also has a low degree of innovation. This means that to check if there is a causational effect between the two concepts, further research has to be done in different

Organizational culture: Assumptions that define the organizational goals and products create a powerful restraint on change, especially technological change.

The competing values framework represents a theory, based on the crucial indicators of an effective organization. It revolves around four major components of organizational culture, which measure the organization's leadership style, institutional bonding, strategic emphases and general cultural characteristics. Leaders and managers benefit from this conceptual framework as it offers teaching tools and helps interpret various organizational functions and processes. In order the examine the organizational culture more in depth, this framework has been extended (Quinn and Kimberly, 1984, p 298). They identified the two main dimensions upon which the competing values framework of cultured is based : the competing demand of change and stability, and the conflicting demands created by the internal organization and the external environment. These dimensions were reflected by other scholars as Thomson