Question

When an organization undergoes institutionalization,acceptable modes of behaviour become largely self-evident to members.This can lead to which negative outcome?

A) stifling innovation
B) preventing employee growth
C) declining organizational citizenship
D) decreasing ethics
E) increasing formalization

Answer 1

Institutionalization in an organization often leads to stifling innovation as employees conform to norms and are less likely to challenge the status quo, potentially leading to a lack of new ideas and ethical issues.

Step-by-step explanation:

When an organization undergoes institutionalization, acceptable modes of behavior become largely self-evident to members. This process can have various consequences, one of which is stifling innovation. As the organizational culture becomes entrenched, employees may be less likely to challenge the status quo, leading to fewer innovative ideas and a tendency to maintain established routines and procedures. A culture of conformity can also result in obedience to authority and adherence to norms without critical thinking, potentially leading to ethically and morally suspect acts. This issue is further compounded by the trend of increasing formalization in organizations, as seen in the 'McDonaldization' of society, where uniqueness is often sacrificed for standardization and efficiency.