Exploring Institutional Theory in Organizational Behavior

In this month’s episode, we discuss John Meyer and Brian Rowan’s famous 1977 article “Institutionalized organizations: Formal structure as myth and ceremony.” In it, they argued that “institutionalized products, services, techniques, policies, and programs function as powerful myths, and many organizations adopt them ceremonially” (p. 340), even if they result in organizations becoming less efficient or effective in their intended missions or purposes. In fact, these myths can become so powerful as to stigmatize organizations that reject them. In Part 1, we explore the author’s arguments in depth and compare it to the rational theories of organizing that dominated beforehand.