What is Institutional Theory?


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INSTITUTIONAL THEORY.

Ans.    This theory suggests that managers conform with industry norms, company’s traditions, legislations, social and political belief while formulating policies. Decision are taken or actions are performed in a certain way so as to conform with the norms accepted by the society so that it gets legitimacy or acceptance by others. Thus institutional environment strongly influences the development of formal structures in an organization more profoundly than market pressures.

 


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MT UVA BMS

MT UVA- University, Vocational and Affiliated Education for BMS

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