presentation 2- institutions final

8/9/2019 Presentation 2- InSTITUTIONS Final

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Dimaggio, Hall and North on

INSTITUTIONS

A Critique to the Concept of

UNCERTAINTY

Course: Contemporary Social and Political Theory;

Instructor: Prof. C. Edling

Presenter: Andreea Aiordachioaie


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Overview

Introduction The Concept of Uncertainty

Occurrences of the Concept in Dimaggio & Powell (1983)

Comments 1

Occurrences of the Concept in Hall & Taylor (1996)

Comments 2

Occurrences of the Concept in North (1991)

Comments 3

Final (Personal) Comments

Discussion

References


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Introduction The Concept of

Uncertainty

It appears several times in the three texts, withdifferent functions

Why is it inseparable from the discussions oninstitutions? Because it is tightly related with the idea of strategy

Because authors link it to the relationship betweeninstitutions and individual behavior

Because uncertainty is also considered to be a feature

of politics and economics Because it is also mentioned as the root of risk (in

economics, one of the purposes of institutions is therisk administration)


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Occurrences of the Concept in

Dimaggio & Powell (1983)

1. The three mechanisms of institutionalisomorphic change:

a. Coercive

b. Mimetic (resulting to standard responses touncertainty Dimaggio & Powell [1983], p. 150)

c. Normative

Here, the term is related to the concept ofstrategy(from an entrepreneurialperspective)


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2. The term is repeated when the authorsformulate hypotheses based on the predictors

for isomorphic change (organizational- and

field-level predictors):

Occurrences of the Concept in

Dimaggio & Powell (1983)


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Hypothesis A-3: the mimetic tendencies of an

organization increase with the level ofuncertainty of the relationships between

means and ends.


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Hypothesis A-4: the mimetic tendencies of an

organization increase with the level ofuncertainty and ambiguity of its goals.


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Hypothesis B-4: The greater the extent to

which technologies are uncertain or goals areambiguous within a field, the greater the rate

of isomorphic change (Dimaggio & Powell

[1983],p. 156).


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Preliminary Comments 1

Dimaggio and Powell employ the concept of

uncertainty mainly as one of the causes of

institutional isomorphism.

Uncertainty, here, is seen as a factor inhibiting

the development of a strategy.

Mostly refers to very modern institutional

environments.


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Occurrences of the Concept in Hall &

Taylor (1996)

1. The first of the four features of historical

institutionalism: the tendency to

conceptualize the relationship between

institutions and individual behavior in

relatively broad terms(Hall & Taylor [1996],

p. 938)


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The major way in which institutions

affect behavior is by giving actorsgreater or lesser degrees of certainty

about the present and future behavior

of other actors (idem, p. 939)


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Taylor (1996)

2. The third feature of the rational choice

institutionalism: emphasizing the role ofstrategic interactions in the

determination of political outcomes:


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Institutions structure such interactions by

affecting the range and sequence of

alternatives on the choice-agenda or by

providing information and enforcement

mechanisms that reduce uncertainty about

the corresponding behavior of others (idem,

p. 945)


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3. Members of this school [rational choice

institutionalism] emphasize that political

action involves the management of

uncertainty, long one of the most central and

neglected features of politics (idem, p. 951)


Taylor (1996)


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Hall and Taylor -> micro-level approach to

institutionalism: the relationship of

institutions with individuals or evenrelationships between individuals that are

mediated by institutions.

Perspective: strategy, again.

Politics comes into discussion for the first time

and uncertainty appears as its main feature.


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Occurrences of the Concept in North

(1991)

1. First paragraph of the text, right after the

definition of institutions: Throughout

history, institutions have been devised by

human beings to create order and reduce

uncertainty in exchange (North [1991], p.

97)


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2. The sub-chapter dedicated to the innovations

brought to institutions in early modern

Europe:

The transformation of uncertainty into risk.

Occurrences of the Concept in North

(1991)

By uncertainty, I mean here a condition wherein

one cannot ascertain the probability of an event

and therefore cannot arrive at a way of insuringagainst such an occurrence. Risk, on the other

hand, implies the ability to make an actuarial

determination of the likelihood of an event and

hence insure such an outcome (idem, p. 106)


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Modernization of institutions =>

transformation of uncertainty into risk

(minimizing unpredictability; increasing levelof anticipation gained from experience)

Reduction of uncertainty + creation of order =

the only causes of the creation of institutions


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Conclusion

Reviewed literature:

Uncertainty = one of the bases and main causes of

the emergence of institutions

It is emphasized as part of personal, political,

economic relations

Institutions are supposed to diminish the level of

uncertainty in those relations


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Final Comments

Other possible causes that led to the

emergence and development of institutions:

Need for efficient communication (via

intermediates)

Need for recognition of group-affiliation

Geographical boundaries and large distances

Need for security (not certainty)


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Final Comments

With the emergence of institutional

isomorphism, institutions might not be as

successful in diminishing uncertainty (they

employ pattern-behaviors, standard solutions,

classical strategies)


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Discussion

In your opinion, how well are institutions

doing in diminishing the level of uncertainty

in:

Individual relations?

Institutional-individual relations?

Inter-institutional relations?


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Discussion:

Ruling

(Government)Marriage Banks

Child

Adoption

Social

AssistanceElderly care

CorporationsPostal

ServicesHealth care

Consider the following institutions or institutionalized activities:

Choose one and discuss to what extent some form of uncertainty caused the

apparition of that particular institution in the first place.


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References

Dimaggio, P. J. & Powell, W. W. (1983). The Iron Cage

Revisited Institutional Isomorphism and Collective

Rationality in Organizational Fields. American Sociological

Review 48(2): 147-160

Hall, P. A. and Taylor, R. C. R. (1996). Political Science and

the Three New Institutionalisms. Political Studies 44(5):

936-957

North, D. C. (1991). Institutions. Journal of Economic

Perspectives 5(1): 97-112

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