Question

(a) Explain the concepts of differentiation and integration. In what type of environmental uncertainty will differentiation and integration be greatest and least? Illustrate with examples.

(b) How does the desire for legitimacy result in organizations becoming more similar over time? Illustrate each of the different types of isomorphism with a specific example that you know well.

Answer 1

1. Concept of differentiation and integration:

Differentiation is considered to be a local concept whereas integration requires some global knowledge.

Differentiation and integration are considered to be the blocks of calculus. These both are generally considered to be contradictory in nature. The process of dividing something is differentiation whereas integral adds all the pieces of information together.

In which type of environment both will be greatest and least.

Differentiation is the difference in cognitive and emotional orientations among managers in various functional departments and difference in formal structure in the departments.

Coordination is the one which becomes difficult between the departments.

Whereas integration is the collaboration among the departments. When there is uncertainty in the environment, there is requirement for additional information to achieve coordination. Hence integrators are a necessary addition to the structure of the organization.

1. Legitimacy:

If the company is really doing well, then other companies would like to copy or imitate this company, because they would also like to be legitimate or like to be seen legitimate.

Isomorphism is the similarity in the structure or process of the organization with other organization.

There are three types of isomorphism:

• Normative
• Coercive
• Mimetic.

Normative isomorphism is the one which is always in contrast to the mimetic isomorphism and acts in similar way like that of a coercive isomorphism. It is in contrast to mimetic because uncertainty forces the organization to go for imitation and is similar to coercive where the organizations are forced to change because of the external forces. Example: people who are from similar education background approach the problems in similar manner.

Coercive isomorphism is the one where the organizations will be forced to change because of the pressures from other organizations and also because of expectations from the society. Examples of this type of isomorphism is liberal political organizations who are in definite use of this concept.

Mimetic isomorphism generally refers to the organization adopting the structure of similar other organization considering the fact that it is successful and beneficial. For example, a university hiring an expert faculty to be considered similar in status of a respected organization.