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Institutionalization is a process. It is something that happens to an organization over time, reflecting the organization’s own distinctive history, the people who have been in it, the groups it embodies and the vested interests they have created, and the way it has adapted to its environment.

The relations outlined on an organization chart provide a framework within which fuller and more spontaneous human behavior takes place. The formal system may draw upon that behavior for added strength; it will in its turn be subordinated to personal and group egotism.

To institutionalize is to infuse with value beyond the technical requirements of the task at hand. The prizing of social machinery beyond its technical role is largely a reflection of the unique way in which it fulfills personal or group needs. Whenever individuals become attached to an organization or a way of doing things as persons rather than as technicians, the result is a prizing of the device for its own sake. From the standpoint of the committed person, the organization is changed from an expendable tool into a valued source of personal satisfaction.

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An organization is a group of living human beings. The formal or official design for living never completely accounts for what the participants do. It is always supplemented by what is called the “informal structure,” which arises as the individual brings into play his own personality, his special problems and interests. Formal relations co-ordinate roles or specialized activities, not persons.

Whereas some consequences of our actions occur as planned, others are unanticipated; social actions are not context-free but are constrained, and their outcomes are shaped by the setting in which they occur. Especially significant are the constraints on action that arise from commitments enforced by institutionalization. Because organizations are social systems, goals and procedures tend to achieve an established, value impregnated status. We say that they become institutionalized.

The formal administrative design can never adequately or fully reflect the concrete organization to which it refers, for the obvious reason that no abstract plan or pattern can—or may, if it is to be useful—exhaustively describe an empirical totality. At the same time, that which is not included in the abstract design (as reflected, for example, in a a staff and-line organization chart) is vitally relevant to the maintenance and development of the formal system itself.

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