Organizational Change as a Change in the Scope of Institutionalization
With regard to ‘change in the scope of institutionalization’, Berger and Luckmann
(1966) argue that institutionalization in a society can be total, meaning that one
institutional order embraces the totality of social life. By contrast, although
there can (and must) be an absolute minimum of a shared order, the bulk of the
institutional arrangements can be found at the level of subgroups. The scope of
institutionalization, then, refers to the generality of the relevant structures. The
scope is wide if all or most of these structures are shared generally; approaching
total institutionalization. If only a few structures are shared, the scope is narrow.
Consequently, change in the scope of institutionalization refers to movement from
narrow to wide and vice versa. With regard to organizations, there can be movement
in the scope of institutionalization as well (Hatch, 1997). The organization
can be conceived of as highly centralized; with institutionalization approaching
a state of totality, with every part being geared towards a central organizational
goal. By contrast, an organization can be highly decentralized, with a minimal
common goal, and with the subunits governed more by their own institutional
arrangements. A movement broadening or narrowing the scope of institutionalization
within an organization then is a very specific form of organizational change.