INSTITUTIONAL ISOMORPHISM
BY
SAMUEL EMEKA MBAH PhD
REASONS FOR INCREASED SIMILARITY
IN HRM PRACTICES
Institutional isomorphism or pressures provide
reasons for similarity in HRM practices
WHAT IS INSTITUTIONAL
ISOMORPHISM ?
 Meaning/ Definition:
Institutional isomorphism is also called institutional similarity
This concept is developed by DiMaggio and Powell in 1983.
 The nature and behaviour of firms when faced with identical
environmental constraints is to move towards homogeneity
over
WHAT IS INSTITUTIONAL
ISOMORPHISM ?
 time as a result of isomorphic pressures (DiMaggio &
Powell 1993)
 Isomorphism stipulates that certain forces influence the
shape of institutions in the society and the internal
practices of organisations within a given environment or
organisational field.
WHAT IS INSTITUTIONAL
ISOMORPHISM ?
 From a wider perspective, the concept describes how
institutional values, systems, structures, processes,
practices and events that offer constancy and meaning to
social bebaviour in organisations become more and more
alike.
 According to DiMaggio and Powell (1983) institutional
CONT’D
similarity stems from three types of pressure or
isomorphism:
 They are:
1. Coercive pressure or Isomorphism
2. Mimetic Pressure or Isomorphism and
3. Normative Pressure or Isomorphism
1. COERCIVE ISOMORPHISM OR
PRESSURES:
 Coercive isomorphism refers to external pressures
imposed on organisations through extant rules and
regulations made by
government,
agencies
regulatory bodies
CONT’D
For instance, whenever laws are passed that regulate
organisational structures and procedures, they
simultaneously create expectations, constraints and
pressures for organisations to comply.
CONT’D
 Compliance results in similarity of systems, practices,
processes. But where non-compliant is perceived, the
legitimacy of such organisation is brought to scrutiny.
 Examples of regulatory bodies are, CBN, NUC, MAN, SON
 The Nigerian University Commission (NUC), as a Government
regulatory body, sets rules, monitors and sanctions activities
CONT’D
 of Nigerian Universities, compliance will result in
institutional similarity.
Consequently, when organisations or institutions comply
with extant rules and regulations as expected within a given
unit or organisational field,
Their systems, structures, processes or practices become
similar or homogeneous.
COERCIVE ISOMOPHISM AND
DEPEDNENT ORGANISATIONS
Again, coercive isomorphism means pressures exerted on
firms by other organisations which they depend on.
 Coercive isomorphism is driven by influences from peer
organisations (i.e., same sector or industry) that depend on
norms, rules, laws and regulations.
CONT’D
 For instance, coercive isomorphism occurs when a
dependent firm adopts a structure, system or practice of
another organisation in same sector or industry.
 This type of pressures arise from adoption of structure,
system or practice of another organisation.
The more dependent on another organisation, the more
CONT’D
 alike it will become
The greater the centralisation of resource supply, the more
it will change to resemble the organisations it is dependent
upon.
NORMATIVE ISOMORPHISM OR
PRESSURES
 Normative isomorphism explains the resemblance of
organisations that occur under circumstances such as
professionalization of a service or practice ( Mizruchi &
Fein, 1999)
 Also, seen as the adoption of structures and patterns
considered superior and associated with professionalism
(Popadiuk, Rivera & Bataglia, 2014)
NORMATIVE ISOMORPHISM OR
PRESSURES
 These definitions suggest normative isomorphism occurs
due to strict adherence and application of professional
conventions and standards by members working in an
organisation .
 Professionalisation facilitates institutional convergence.
NORMATIVE ISOMORPHISM OR
PRESSURES
 For examples when members of professional bodies like
CIPMN, ICAN, NSE, NMA, NBA, pledge alliance by oath to
uphold codes of ethics of profession without compromise,
they producing sameness of action across national
boundaries, Which are reinforced throu socialisation process
in training and networks (Djelic, 2004).
NORMATIVE ISOMORPHISM OR
PRESSURES
 annual conferences, presentations monthly or quarterly
bulletins to keep members professional status alive at all
times
 Members of the same professional body when they socialize
through training view phenomenon in the same perspective.
NORMATIVE ISOMORPHISM OR
PRESSURES
 Members of same professional body interact through
professional and trade associations, which further diffuse
ideas among them
 They carry their wealth of experience, ideas, knowledge as
well as their assumptions of how things are done not done,
which imposes a great deal of homogenization within the
field.
2. MIMETIC ISOMORPHISM OR
PRESURES
Mimetic isomorphism is as an institutional perspective has
received wide research explorations especially in response
to environmental uncertainties
 Firms will mimic other organisations that fall within their
industry as response to uncertainties in order to maintain
competitiveness and avoid or minimize adverse and
unexpected outcomes.
TWO MAJOR TYPES OF MIMETIC
ISOMORPHISM
 Three types of mimetic isomorphism exist.
They are:
 Frequency-based imitation
 Trait-based imitation
 Outcome-based imitation (Biloslavo & Lynn, 2007).
Frequency-based imitation:
Frequency-based imitation: relates to the purest form
of mimetic isomorphism.
 This occurs when firms imitates or adapt the practices and
structures that have been embraced by the majority of
firms within an industry (Biloslave & Lynn, 2007, Wu,
Daniel, Hinton & Quintas, 2013)
Trait-based imitation:
Trait-based imitation: This one involves high level of
selectivity when contrasted to frequency-based imitation
 Trait-based imitation happens when a firm exclusively focus
on imitating the mannerisms of firms that have particular
characteristics, such as size and centrality in the community
CONT’D
 DiMaggio and Powell, (1983) assert that in response to
uncertainties arising from institutional environment, firms
benchmark others who have handled such situation
successfully in the past.
 A study by Pfarre et al. (2005) found that firms voluntarily
restate their earning when industry peers did so in the past.
Outcome-based imitation
Outcome-based Imitation: Is almost similar to trait-
based imitation in that it involves selectively imitating
decisions and practices that lead to prosperous results
 It occurs when actions that seem to be connected to
success are copied (Wu et al., 2013, p.167).
CONT’D
 Wu et al. (2013) pinpointed that many stories within the
institutional theory discourse concentrated on frequency
and trait-based imitations.
 However, they observed that outcome based imitation can
be critical particularly in the initial stages of adopting a
practice.
REVISION / PRACTICE QUESTIONS
1. With illustration, discuss coercive process organisations adopt to
achieve institutional isomorphism
2. Discuss relevant instances of Professionalisation that could stem from
normative isomorphism
3. The greater the reliance on academic credentials in choosing
managerial and staff personnel the greater the extent to which an
organisation will become like other organisation in its field. Discuss.
THE END
THANK YOU

WHAT WE MEAN BYINSTITUTIONAL ISOMORPHISM.pptx

  • 1.
  • 2.
    REASONS FOR INCREASEDSIMILARITY IN HRM PRACTICES Institutional isomorphism or pressures provide reasons for similarity in HRM practices
  • 3.
    WHAT IS INSTITUTIONAL ISOMORPHISM?  Meaning/ Definition: Institutional isomorphism is also called institutional similarity This concept is developed by DiMaggio and Powell in 1983.  The nature and behaviour of firms when faced with identical environmental constraints is to move towards homogeneity over
  • 4.
    WHAT IS INSTITUTIONAL ISOMORPHISM?  time as a result of isomorphic pressures (DiMaggio & Powell 1993)  Isomorphism stipulates that certain forces influence the shape of institutions in the society and the internal practices of organisations within a given environment or organisational field.
  • 5.
    WHAT IS INSTITUTIONAL ISOMORPHISM?  From a wider perspective, the concept describes how institutional values, systems, structures, processes, practices and events that offer constancy and meaning to social bebaviour in organisations become more and more alike.  According to DiMaggio and Powell (1983) institutional
  • 6.
    CONT’D similarity stems fromthree types of pressure or isomorphism:  They are: 1. Coercive pressure or Isomorphism 2. Mimetic Pressure or Isomorphism and 3. Normative Pressure or Isomorphism
  • 7.
    1. COERCIVE ISOMORPHISMOR PRESSURES:  Coercive isomorphism refers to external pressures imposed on organisations through extant rules and regulations made by government, agencies regulatory bodies
  • 8.
    CONT’D For instance, wheneverlaws are passed that regulate organisational structures and procedures, they simultaneously create expectations, constraints and pressures for organisations to comply.
  • 9.
    CONT’D  Compliance resultsin similarity of systems, practices, processes. But where non-compliant is perceived, the legitimacy of such organisation is brought to scrutiny.  Examples of regulatory bodies are, CBN, NUC, MAN, SON  The Nigerian University Commission (NUC), as a Government regulatory body, sets rules, monitors and sanctions activities
  • 10.
    CONT’D  of NigerianUniversities, compliance will result in institutional similarity. Consequently, when organisations or institutions comply with extant rules and regulations as expected within a given unit or organisational field, Their systems, structures, processes or practices become similar or homogeneous.
  • 11.
    COERCIVE ISOMOPHISM AND DEPEDNENTORGANISATIONS Again, coercive isomorphism means pressures exerted on firms by other organisations which they depend on.  Coercive isomorphism is driven by influences from peer organisations (i.e., same sector or industry) that depend on norms, rules, laws and regulations.
  • 12.
    CONT’D  For instance,coercive isomorphism occurs when a dependent firm adopts a structure, system or practice of another organisation in same sector or industry.  This type of pressures arise from adoption of structure, system or practice of another organisation. The more dependent on another organisation, the more
  • 13.
    CONT’D  alike itwill become The greater the centralisation of resource supply, the more it will change to resemble the organisations it is dependent upon.
  • 14.
    NORMATIVE ISOMORPHISM OR PRESSURES Normative isomorphism explains the resemblance of organisations that occur under circumstances such as professionalization of a service or practice ( Mizruchi & Fein, 1999)  Also, seen as the adoption of structures and patterns considered superior and associated with professionalism (Popadiuk, Rivera & Bataglia, 2014)
  • 15.
    NORMATIVE ISOMORPHISM OR PRESSURES These definitions suggest normative isomorphism occurs due to strict adherence and application of professional conventions and standards by members working in an organisation .  Professionalisation facilitates institutional convergence.
  • 16.
    NORMATIVE ISOMORPHISM OR PRESSURES For examples when members of professional bodies like CIPMN, ICAN, NSE, NMA, NBA, pledge alliance by oath to uphold codes of ethics of profession without compromise, they producing sameness of action across national boundaries, Which are reinforced throu socialisation process in training and networks (Djelic, 2004).
  • 17.
    NORMATIVE ISOMORPHISM OR PRESSURES annual conferences, presentations monthly or quarterly bulletins to keep members professional status alive at all times  Members of the same professional body when they socialize through training view phenomenon in the same perspective.
  • 18.
    NORMATIVE ISOMORPHISM OR PRESSURES Members of same professional body interact through professional and trade associations, which further diffuse ideas among them  They carry their wealth of experience, ideas, knowledge as well as their assumptions of how things are done not done, which imposes a great deal of homogenization within the field.
  • 19.
    2. MIMETIC ISOMORPHISMOR PRESURES Mimetic isomorphism is as an institutional perspective has received wide research explorations especially in response to environmental uncertainties  Firms will mimic other organisations that fall within their industry as response to uncertainties in order to maintain competitiveness and avoid or minimize adverse and unexpected outcomes.
  • 20.
    TWO MAJOR TYPESOF MIMETIC ISOMORPHISM  Three types of mimetic isomorphism exist. They are:  Frequency-based imitation  Trait-based imitation  Outcome-based imitation (Biloslavo & Lynn, 2007).
  • 21.
    Frequency-based imitation: Frequency-based imitation:relates to the purest form of mimetic isomorphism.  This occurs when firms imitates or adapt the practices and structures that have been embraced by the majority of firms within an industry (Biloslave & Lynn, 2007, Wu, Daniel, Hinton & Quintas, 2013)
  • 22.
    Trait-based imitation: Trait-based imitation:This one involves high level of selectivity when contrasted to frequency-based imitation  Trait-based imitation happens when a firm exclusively focus on imitating the mannerisms of firms that have particular characteristics, such as size and centrality in the community
  • 23.
    CONT’D  DiMaggio andPowell, (1983) assert that in response to uncertainties arising from institutional environment, firms benchmark others who have handled such situation successfully in the past.  A study by Pfarre et al. (2005) found that firms voluntarily restate their earning when industry peers did so in the past.
  • 24.
    Outcome-based imitation Outcome-based Imitation:Is almost similar to trait- based imitation in that it involves selectively imitating decisions and practices that lead to prosperous results  It occurs when actions that seem to be connected to success are copied (Wu et al., 2013, p.167).
  • 25.
    CONT’D  Wu etal. (2013) pinpointed that many stories within the institutional theory discourse concentrated on frequency and trait-based imitations.  However, they observed that outcome based imitation can be critical particularly in the initial stages of adopting a practice.
  • 26.
    REVISION / PRACTICEQUESTIONS 1. With illustration, discuss coercive process organisations adopt to achieve institutional isomorphism 2. Discuss relevant instances of Professionalisation that could stem from normative isomorphism 3. The greater the reliance on academic credentials in choosing managerial and staff personnel the greater the extent to which an organisation will become like other organisation in its field. Discuss.
  • 27.