Institutional Theory

The video tutorial explores institutional theory, focusing on how organizational structures, rules, and norms are shaped more by social forces than economic ones. It highlights the role of social pressures, such as ethics and local culture, in influencing organizational behavior and structure adoption. The theory emphasizes understanding these social elements to comprehend organizational dynamics.

What does organizational theory primarily focus on within organizations?

• Financial management

• Technical advancements

• Social behavior and conduct

• Economic performance

Which type of pressures are more influential in the adoption of organizational structures?

• Technical pressures

• Economic pressures

• Social pressures

• Legal pressures

How do social pressures affect the retention of norms and routines in organizations?

• By enhancing technical skills

• By encouraging conformity and legitimacy

• By promoting economic efficiency

• By enforcing legal compliance

What are some examples of social pressures mentioned in the context of organizational structures?

• Government regulations

• Technological innovations

• Market trends and competition

• Ethics, peer activity, and local culture

What is the main focus of institutional theory in understanding organizations?

• Financial growth

• Social elements and their influence

• Technological development

• Market expansion