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Institutional Theory

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Institutional Theory

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by iloveaccountancy.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • July 30, 2019 at 11:45 pm #525677
    iloveaccountancy
    Member
    • Topics: 119
    • Replies: 111
    • ☆☆☆

    Hi Ken

    thank you for your lectures, which are very concise and clearly explained. I really appreciate them.

    May I ask you about ‘institutional theory’. (I did do a Google search but could not get an answer to my question).

    I am wondering, does this always have a negative connotation? e.g. When identifying it in a scenario. Or can it be practical to identify it and accept it as such? For example, a large firm has reluctance to change budgeting or production processes, so trying to change these strategically is inadvisable, or is advisable but would cause risk of staff friction (e.g. the formal is not a negative but a practical observation, the latter implies a negative situation that needs to be changed).

    I hope I explained what I mean ok.

    July 31, 2019 at 9:59 pm #525907
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    Thank you for your kind words.

    It is not always negative because it can cause high stability in an organisation. That might sometimes be desirable. However, often flexibility is needed instead.

    It shouldn’t drive stratefic change. An organisation should decide what it needs to do to have a sustainable future then overcome any resistance to change that impedes implementation of strategic decisions.

    August 1, 2019 at 12:07 am #525920
    iloveaccountancy
    Member
    • Topics: 119
    • Replies: 111
    • ☆☆☆

    Hi Ken

    thank you for explaining. that answers my question perfectly.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Institutional Theory’ is closed to new replies.

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