Another recent development is the theory of formal organizations, that is, structures planfully instituted, such as those of an army, Bureaucracy, business enterprise, etc. This theory is framed in a philosophy which accepts the premise that the only meaningful way to study organization is to study it as a system.

Formal government can be defined as: a group of men who sell retribution to the inhabitants of a limited geographic area at monopolistic prices.

Let us define institutions as sets of rules governing interpersonal relations, noting that we are talking about formal political and organizational practices.

# Strategic structuring, informal or formal, whereby social agents, including the state, establish a rule regime regulating market access and transactions...

Institutions consist of cognitive, normative and regulative structures and activities that provide stability and meaning to social behaviour. Institutions are transported by various carriers – cultures, structures, and routines – and they operate at multiple levels of jurisdiction.

Many formal organizational structures arise as reflections of rationalized institutional rules. The elaboration of such rules in modern states and societies accounts in part for the expansion and increased complexity of formal organizational structures. Institutional rules function as myths which organizations incorporate, gaining legitimacy, resources, stability, and enhanced survival prospects. Organizations whose structures become isomorphic with the myths of the institutional environment-in contrast with those primarily structured by the demands of technical production and exchange-decrease internal coordination and control in order to maintain legitimacy. Structures are decoupled from each other and from ongoing activities. In place of coordination, inspection, and evaluation, a logic of confidence and good faith is employed.

Institutions are the humanly devised constraints that structure political, economic, and social interactions. They consist of both informal constraints (sanctions, taboos, customs, tradition, and code of conduct) and formal rules (constitutions, laws, property rights).

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.

Institutions are the humanly devised constraints that structure political, economic, and social interaction. They consist of both informal constraints (sanctions, taboos, customs, traditions, and codes of conduct), and formal rules (constitutions, laws, property rights). Throughout history, institutions have been devised by human beings to create order and reduce uncertainty in exchange.

Institutions are social structures that have attained a high degree of resilience. [They] are composed of cultural-cognitive, normative, and regulative elements that, together with associated activities and resources, provide stability and meaning to social life. Institutions are transmitted by various types of carriers, including symbolic systems, relational systems, routines, and artifacts. Institutions operate at different levels of jurisdiction, from the world system to localized interpersonal relationships. Institutions by definition connote stability but are subject to change processes, both incremental and discontinuous.

Every company has two organizational structures: the formal one is written on the charts; the other is the everyday living relationship of the men and women in the organization.

What we call structure is a shorthand way of describing repetitive patterns, encounters that people keep coming back to, a recycling of rituals. This larger structure has the feel of externality; it seems thing-like, compulsory, resistant to change. This sense of constraint arises in part because the major institutions as repetitive networks are based on their distinctive interaction rituals, which have generated emotional commitments to their identifying symbols. It is characteristic of these intensely produced membership symbols that people reify them, treat them as things, as “sacred objects” in Durkheim’s sense. Organizations, states, as well as positions and roles within them, are sacred objects in just this sense: reified patterns of real-life interaction, cognitively raised above the level of the merely enacted, and treated as if they were self-subsistent entities to which individuals must conform. This symbolic social structuring of the world extends even to physical objects by making them into property appropriated under the sanction of social groups.

Institutional structures are legitimate insofar as they enhance the opportunity to freely inquire and create, out of inner need; otherwise, they are not.

All organizations are hierarchical. At each level people serve under those above them. An organization is therefore a structured institution. If it is not structured, it is a mob. Mobs do not get things done, they destroy things.