What Makes An Organization Successful?

1369 Words Nov 21st, 2015 6 Pages
Amazon What attributes make an organization successful? It depends on the environment, the management style as well as a host of other factors. Since the late 19th century sociologist have been studying organizations to determine, what works and what doesn’t, to be effective and purposeful. Through the past century theories have been developed to define organization structures, such as open systems theory that says organizations can be mechanistic or conversely organic. Other theories like Institutional theory seek to explain how organizations are influenced by their environments. Resource dependence theory details how all organizations rely on their environment for resources that they cannot create on their own, even when other …show more content…
Amazon.com was innovative and ahead of the game when its online retail business began. The online environment was a new and exciting business frontier. As other organizations entered the online marketplace they drew inspiration from Amazon’s model. According to DiMaggio and Powell (1983), “…structural change in organizations seems less and less driven by competition or by the need for efficiency. Instead, …bureaucratization and other forms of organizational change occur as the result of processes that make organizations more similar without necessarily making them more efficient.” (p. 147) By accepting Amazon’s structure as their own, and helping to legitimize it, the new participants in the environment have limited their ability to transform in the future. Within Institutional Theory, DiMaggio and Powell developed three processes to describe the transformation of organizations in the same environment. The first process, coercive isomorphism promotes similarity through regulations. For Amazon there are many regulations that influence its structure. There are rules that determine how they promote their brand and what items they are allowed to offer. There are also regulations designed to protect consumers of Amazon’s brand that the company must adhere to. Mimetic isomorphism refers to an organization imitating an idea that was successful for another company, even if it is not the best
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