New institutional theory

EDUC 250B: Organizational Analysis of Higher Education

Ozan Jaquette

Overview

PLEASE EXCUSE TYPOS

Theoretical perspectives new institutionalism draws from

Contingency theory (Thompson, 1967)

Contingency theory: historical context, overview

Historical context

Overview

Influence

Organizational domain and task environments (Thompson, 1967)

Organizational domain

Task environment: “elements of its environment with which it is most interdependent” (Davis & Powell, 1993, p. 318)

Task environment mostly composed of other orgs w/ their own priorities

Strategies to overcome uncertainties in task environment

External environment and organizational structure (Thompson, 1967)

Contingency theory argues that the more complicated the external environment the organization has to deal with, the more complicated the organizational structure needs to be to deal with this environment

Examples in higher education

Thompson (1967), overview

Thompson (1967) Organizations in Action is the culminating and most famous statement of contingency theory

Thompson (1967) borrows from Parsons (1960), which disaggregates organizational structure into three distinct levels of responsibility and control

Technical level, Thompson (1967)

Technical level is part of the organization that creates core products and is focused on “effective performance of the technical function”

Examples

Large, complicated organizations that do many things have many offices and may have many technical levels

Managerial level, Thompson (1967)

Thompson (1967) conception of “managerial level” combines the “managerial level” and “institutional level” of Parsons (1960)

Managerial level mediates between technical level and the stakeholders (e.g., suppliers, customers) who provide inputs to technical level and rely on products from technical level

Broad roles of managerial level:

Buffering

Org requires resources from external environment

Efficiency of technical level requires a small number of stable goals

Most basic hypothesis of contingency theory (Davis & Powell, 1993, p. 318)

Solution: “buffering”

Buffering examples in in higher education, department heads

Good department heads buffer faculty from competing/changing demands

Example: dept of higher education at university of arizona

Buffering examples in in higher education, research teams

Long-term survival of academic research teams (including stable funding for graduate students) depends on:

Technical level:

Managerial level

Propositions from Thompson (1967 SKIP)

After introducing basic concepts (above), remainder of Thompson (1967) focused on developing general propositions about how organizations will organize (e.g., change structure)

Example propositions:

Parsons (1956)

Parsons (1956), Suggestions for a sociological approach to the theory of orgs

Definition of organizations

Influential ideas from article:

Comparing Parsons (1956) to resource dependence theory

Both theories assume orgs need resources from external environment to survive

Parsons (1956) (influential for new institutional theory)

Resource dependence theory (Pfeffer & Salancik, 1978)

Comparison

Application/implications

Loose coupling (Weick, 1976)

Loose coupling (Weick, 1976)

Tight coupling

Loose coupling

Loosely coupled systems, de-coupling

A loosely coupled system is one in which different parts/elements of the system tend to be loosely coupled

De-coupling

Social construction of reality (Berger & Luckmann, 1967)

Berger & Luckmann (1967), The social construction of reality: A treatise in the sociology of knowledge

Influential for new institutionalism, especially Meyer & Rowan (1977)

Definitions

institutions and institutionalizaton

(Berger & Luckmann, 1967), institutionalization thought experiment

Actor A and B, from two different places are stuck together on a desert island (or they are just two people who get married).

But once a new generation appears (A & B have children) these children are born into a world of institutions they did not invent, p. 58:

Meyer & Rowan (1977)

Meyer & Rowan (1977), survival and legitimacy

Org goals

“legitimacy”

Meyer & Rowan (1977), rationalized myths and institutions

rationalized myths (p. 343-344)

Institutions

Comparison of rationalized myths and institutions

rationalized myths and formal organizational structure

Organizations incorporate “rationalized myths” or “institutions” into their formal organizational structure

Examples in higher education

Institutionalization

Institutionalization

Examples in higher education

Isomorphism

Isomorphism

Why does isomorphism happen?

Consequences of isomorphism

technical demands versus conformance to institutionalized norms

technical efficiency vs. institutionalized norms

Two reasons for creation of formal structure:

  1. Technical efficiency. Actually need formal structure to coordinate/control activities to create the product (smartphone makers, TV makers, mining companies)
    • e.g., need a quality control department to reduce number of product defects
  2. Legitimacy. To show adherence to institutionalized norms, without necessarily increasing technical efficiency
    • Goal is to gain legitimacy/support from external environment
    • e.g., show we care about retention by creating “student success” center

Does survival depend on efficiency or conformance to institutionalized norms?

Usually, org survival depends on technical efficiency in some domains and adherence to institutionalized myths in other domains

Conflict between technical demands and institutional demands

When org needs to both be technically efficient and survival also depends on adhering to institutionalized norms

Solution: symbolic vs. substantive adoption

How can you tell whether goal/policy has been substantively adopted?

Potential examples of symbolic adoption in higher education

But these efforts may represent substantive/earnest efforts. How to investigate:

Decoupling and symbolic adoption

Motivation fo decoupling

Decoupling

Ceremonial inspection

 Ceremonial inspection/assessment is necessary for symbolic adoption to work

Ceremonial inspection in higher education

Question about Meyer & Rowan (1977)

DiMaggio & Powell (1983)

DiMaggio & Powell (1983), isomorphism

Motivating question for DiMaggio & Powell (1983)

Isomorphism

Two types of isomorphism: competitive and institutional

Three types of institutional isomorphism

Types of institutional isomorphism: 1. Coercive isomorphism

Isomorphism: process by which organizations adopt the same structures, practices, policies, programs, etc.

Coercive isomorphism

Examples of coercive isomorphism

Types of institutional isomorphism: 2. mimetic isomorphism

What is mimetic isomorphism

Examples of mimetic isomorphism

Mimetic isomorphism can be sub-conscious/unthinking following of rules

Mimetic isomorphism can do mimicry in a cunning way

Types of institutional isomorphism: 3. normative isomorphism

Normative isomorphism: professions influence the practices orgs adopt

Examples of normative isomorphism

How practices spread by normative isomorphism spread

Organizational fields and isomorphism

Organizational fields

Organizational field

From heterogeneity to homogeneity over time

Structuration

Structuration

Structuration process occur through following 4 mechanisms (and observing these mechanisms is an indicator of structuration)

  1. increase in the extent of interaction among organizations in the field
  2. emergence of hierarchical relationships of domination between organizations and coalition building between organizations
  3. increase in the information load an organization must contend with
  4. development of awareness of a set of organizations involved in a common enterprise

Disagreements between Meyer & Rowan (1977) and DiMaggio & Powell (1983)

Meyer & Rowan (1977)

DiMaggio & Powell (1983)

Discussion of Edelman (1992)

Discussion of Edelman (1992)

References

Berger, P. L., & Luckmann, T. (1967). The social construction of reality: A treatise in the sociology of knowledge (pp. xi, 219p.). Garden City, N.Y.: Doubleday.

Davis, G. F., & Powell, W. W. (1993). Organization-environment relations. In M. D. Dunnette, L. M. Hough, & H. C. Triandis (Eds.), Handbook of industrial and organizational psychology (2nd ed., Vol. 3, pp. 315–375). Palo Alto, Calif.: Consulting Psychologists Press.

DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.

Edelman, L. B. (1992). Legal ambiguity and symbolic structures: Organizational mediation of civil-rights law. American Journal of Sociology, 97(6), 1531–1576.

Emerson, R. M. (1962). Power-dependence relations. American Sociological Review, 27(1), 31–41. Retrieved from <Go to ISI>://A1962CBJ7800003

Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. The American Journal of Sociology, 83(2), 340–363.

Parsons, T. (1956). Suggestions for a sociological approach to the theory of organizations, part i. Administrative Science Quarterly, 1(1), 63–85. Retrieved from <Go to ISI>://A1956CAS9500003

Parsons, T. (1960). Structure and process in modern societies (p. 344 p.). Glencoe, Ill., Free Press.

Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective (pp. xiii, 300p.). New York: Harper; Row.

Scott, W. R. (1981). Organizations: Rational, natural, and open systems (pp. xviii, 381p.). Englewood Cliffs, N.J.: Prentice-Hall.

Thompson, J. D. (1967). Organizations in action. New York: McGraw Hill.

Weick, K. E. (1976). Educational organizations as looseley coupled systems. Administrative Science Quarterly, 21(1), 1–19. Journal Article.