Business, Management and Accounting
8 years ago

Formal organizational structures prioritize myths over efficiency, risking internal chaos.

American Journal of Sociology
Institutionalized Organizations: Formal Structure as Myth and Ceremony
John W. Meyer, Brian Rowan

Paper Summary

Formal organizational structures are shaped by institutional rules, acting as myths that organizations adopt for legitimacy and survival. These structures can become disconnected from actual activities, relying on trust rather than coordination for operation.

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