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Summary organisation and society
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Organisation and societySummary based on lectures
Lecture 1
Introduction
Organizations play an essential role in various sectors of society, such as
health, education, work, spirituality, and legislation. They are not only
active in their specific domains, but also influence and are influenced by
broader societal systems such as the economy, politics, and culture.
Organizations must constantly adapt to changes in society, such as
technological advancements, economic fluctuations, or political shifts. At
the same time, there are also elements of persistence: some values and
structures remain intact, even when society changes.
The goal of this course is to understand how both change and continuity
occur within organizations and the broader society. How do organizations
remain relevant amidst change? And which elements remain stable
despite societal evolutions?
What are organizations?
Organizations are:
- Purposefully created entities: They are established with specific
intentions or goals.
o (Common) Goal: They share a common objective or mission.
o (Relatively) Continuous Existence: Organizations typically last
over time, although they may change in form or structure.
- Internal structure: Organizations have both formal structures
(hierarchies, roles) and informal structures (relationships, culture).
- External boundaries: Organizations distinguish themselves from
their environment, often through membership and assets.
Institutional theory
According to institutional theory, institutions are systems of regulative,
normative, and cultural-cognitive elements that work together with
activities and resources to provide stability and meaning to social life.
These elements guide how organizations behave and interact with society.
Three main pillars
, 1. Regulative Pillar: This pillar constrains and regularizes behavior
through rules, monitoring, and sanctions. Examples include laws and
formal regulations, but informal social rules can also exist. Example:
In a company, there are rules and policies regarding employee
conduct, with sanctions for non-compliance (e.g., penalties,
dismissal).
2. Normative pillar: This pillar defines what is preferred or
desired (values) and the legitimate means to achieve these ends
(norms). It focuses on what is considered acceptable behavior within
a given social context. Example: In a healthcare organization, the
value might be patient care, and the norm could be that healthcare
professionals must follow ethical guidelines for treatment.
3. Cultural-Cognitive Pillar: This pillar revolves around shared
conceptions that shape how people interpret and make sense of
the world around them. It includes symbols and meanings that are
both subjective (mental representations) and objective (external
systems, like language or cultural norms). The key mechanism here
is sense-making, where people collectively create and interpret
meanings. Example: The concept of "teamwork" in an organization.
It may mean different things to different people, but in the cultural-
cognitive sense, people within the organization share an
understanding of what teamwork means in their context (e.g.,
collaboration and communication).
Institutionalization
Institutionalization refers to the process in which social activities
become regularized and routinized, becoming stable and accepted
features of social structures. This process leads to the establishment of
institutions that are built upon three main pillars: regulative, normative,
and cultural-cognitive elements.
,Main mechanisms
1. Increasing (Economic) Returns (Arthur, 1994): Institutionalization
often leads to increasing returns, meaning the more a system or
practice is used, the more beneficial it becomes.
o High setup costs of new approaches: New methods or
technologies often have high initial costs, making it harder to
switch to alternatives.
o Learning and habituation: People and organizations get
used to established systems.
o Coordination advantage: As more people or organizations
adopt a practice, it becomes easier to coordinate and
collaborate.
o Adaptive expectations of newcomers: New participants
adapt to the existing system because it has become the norm.
Example: The QWERTY keyboard is a good example of this
mechanism, where even though better alternatives exist, people
continue using it because it has become the established standard.
(David, 1985)
2. Increasing Commitment (Selznick, 1994): Institutionalization goes
beyond simply implementing technical solutions; it involves infusing
value into structures, making them part of an organization’s identity.
This process leads to "thick" institutionalization, where structures
and practices become more deeply embedded over time and take on
symbolic significance.
Reasons for Thick Institutionalization:
o Administrative rituals and ideologies: Over time,
structures become part of the organization's routine, enforced
by those in power who have vested interests.
o Shared objectives and purpose: As people in the
organization commit to common goals, they identify with the
organization, strengthening its cohesion.
3. Increasing Objectification (Berger & Luckmann, 1967): This
mechanism refers to how meanings, symbols, and practices that
were once socially constructed begin to be seen as external facts,
beyond the individual. Over time, people stop questioning or even
imagining alternatives to the existing systems or practices. These
practices are now accepted as "facts." These meanings and symbols
are transmitted to new members or outsiders, making them
internalize and accept the established practices without question.
, Lecture 2
Rituals and practices often persist within organizations and societies, even
when they are questioned or face controversy. This persistence is deeply
rooted in the institutional mechanisms of commitment, objectification, and
habituation, as well as the influence of historical imprints.
Where Do We Observe Persistence?
Persistence can occur at multiple levels:
- Organizational Collectives: Industries, professions, or networks of
organizations.
- Organizations: Practices, cultures, and routines within individual
organizations.
- Individuals: Habits, values, and beliefs internalized by members of
an organization.
- Organizational Building Blocks: Policies, processes, and
structures that form the foundation of an organization.
Imprinting refers to how organizations or individuals are shaped by
environmental influences during sensitive periods and how these
influences persist over time.
Sensitive Periods
Sensitive periods are specific moments when an entity (organization or
individual) is particularly susceptible to environmental factors:
1. For Organizations:
o Foundation: The values, norms, and practices established
during an organization's founding often persist and shape its
long-term identity.
o Transitions: Key changes, such as mergers, changes in
ownership, or leadership shifts, are moments of heightened
influence from external environments.
2. For Individuals:
o Role Transitions: Starting a new job or study can shape an
individual's habits, values, and approach to work.
Examples of Imprinting
Organizational Imprints: Universities, such as the RUG, often carry
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