In: Economics
Explain the five levels of influence that stabilize a society’s institutional framework, according to C E Ayres.
Clarence Ayres was one of the founders of institutional school.According to Ayres there are two forces of human behaviour.Firstly,progressive ,dynamic,productive of cumulative change ,and secondly counter productive and static which does not support change.These forces are termed as technology and ceremonialism respectively and markets and private ownership are regarded as examples of ceremonialism. Markets and private ownership do not allow the development of technology which is regarded as societal problem solving ,in which the use of tools and skills are involved.So the main problem of ceremonial phenomena is their rigid nature which does not allow technological progress. Accordingly, Ayres said that social progress can only be there when there is no rigid ceremonies and there is technological progress . So technological progress will displace ceremonial rigidity.This displacement will weaken the institution of ownership in modern societies .Because of technological progress and skills ,there will be weakening of ownership and importance of management will increase .