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

Institutional norms imposed by the state and the professionals dominates the organisational structures.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.