bus.dec.lec.24

bus.dec.lec.24 - Organizational Isomorphism and Management...

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1 Organizational Isomorphism and Management Fads Business Decisions SOC 138/ECO 149
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2 From Individual to Firm We have explored various mechanisms by which individuals come to mimic each other (sometimes with unfortunate results) Social influence, information cascades, etc. Similar phenomena occur at the firm level Organizational decision making affected by structural factors, tendencies towards mimicry Some mechanisms are similar, others less so Today, we explore some of these – and some implications for management practice
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3 Neo-Institutionalism Branch of theory on the border of sociology and economics Focused on how organizations actually behave Somewhat like judgment and decision making writ large Emphasis on structural factors shaping organizational practice, internal mechanisms of pattern maintenance and change, evolution of institutions Important if you want to understand the environment in which you will be working
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4 Organizational Isomorphism A basic neo-institutionalist prediction: organizations within the same field will become more similar over time Called “organizational isomorphism” “Field” constitutes a network of interacting organizations within a given sector of the economy (Note that perfect isomorphism isn’t predicted – witness niche formation – only a general tendency) Compare to similar results regarding mimicry in humans Many mechanisms – we’ll look at a few
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5 External Pressures Organizations face external pressures from many fronts Strategic environment may favor certain forms and practices (e.g., Williamson’s TCE) Regulations from state entities may mandate forms
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This note was uploaded on 01/17/2011 for the course ECON 149 taught by Professor Sohrabian during the Fall '08 term at UC Irvine.

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bus.dec.lec.24 - Organizational Isomorphism and Management...

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