Question

Describe the theoretical process of institutional isomorphism according to DiMaggio and Powell. How does this process potentially affect individual workers in the economy? Be sure to include examples to support your position.

Answer 1

The organizational structure is dominated by the institutional norms imposed by the state and the professionals. The attempt to achieve rationality in the midst of the restriction of these new governmental structures and professionals, lead to the formation of a homogeneous structure, or institutional isomorphism. Isomorphism forces a group of workers to compete with other equal groups, and in very similar codes. Since companies and organizations always compete, this only generates a struggle between equals, and foments conformism since all groups must be equal and are not free to innovate or to leave that struggle, to look for new markets or ways to be efficient.
For example, if a car company creates a type of car, and other similar companies create cars too, then they will only change the shape, colors, designs or styles of cars; but no one will create a motorcycle or a van, and the market will be filled with cars that do not satisfy all people, because companies will be afraid to innovate or create something different, or to have to adapt to the rules of the State.

Answer 2

Institutional isomorphism is a basic notion in institutional theory that explains the uniformity of organizations in an area. The institutional rules set by the state and professionals dominate the organizational structure.

How may the theoretical process impact individual workers in the economy?

The attempt to establish logic among the constraints of these new governmental organizations and specialists results in the construction of a homogeneous framework, or institutional isomorphism.

Isomorphism compels a group of workers to compete with other equal groups in codes that are quite similar.

Because businesses and organizations are continually competing, it creates a fight between equals and fosters conformism because all groups must be equal and are not free to innovate or abandon that conflict, to explore new markets or ways to be more efficient.

Professional organizations are an example of normative pressure that is particularly important to public organizations. Indeed, the public sector is often populated by professional groups that represent a collection of public entities.

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