isomorphism as a constraining process that forces one unit in a population
(or organizationalWeld) to resemble other units that are exposed to the same set of
environmental conditions. There are two types of isomorphism: competitive and
institutional. Competitive isomorphism assumes a system of rationality emphasizing
market competition, niche change, and ‘Wt,’ and is most relevant where free and open
competition exists. However, for a more complete understanding of organizational
change, DiMaggio and Powell ( 1983 ) focus more on an alternative perspective, that of
institutional isomorphism. Three institutional mechanisms are said to inXuence
decision-making in organizations:coercivemechanisms, which stem from political
inXuence and the problem of legitimacy; mimetic mechanisms, which result
from standard responses to uncertainty; andnormativemechanisms, which are
associated with professionalization. Coercive inXuence refers to the formal and
informal pressures exerted by organizations on which aWrm is dependent, as well as
to the cultural expectations held in wider society.
According to Lammers et al. ( 2000 ), new institutionalism criticizes the ‘functio-
nalistic contingency approaches’ of the 1960 s, which assume that actors are
rational. In contrast, new institutionalists believe in the ‘non-rationality’ of
processes at all levels in society—the micro (individual and organizational),
meso (branch or industry), and macro levels (national or international). The
central theme in new institutionalist approaches is the study of processes of
cognitive and normative institutionalism, whereby people and organizations con-
formwithout thinkingto social and cultural inXuences (Lammers et al. 2000 ).
These normative inXuences are taken-for-granted assumptions (Zucker 1977 ) that
actors perceive as being part of their objective reality.
Coercive mechanisms in HRM include, amongst others, the inXuence of labor
legislation and government and, in some societies, the ‘social partners’ (including
trade unions and works councils). Mimetic mechanisms refer to imitations of the
strategies and practices of competitors as a result of uncertainty or fashion in the
Weld of management. The current interest in developing and implementing HR
scorecards (e.g. Becker et al. 2001 ) is an example. Normative mechanisms include
the impact of professional networks on management policies. According to
DiMaggio and Powell ( 1991 ), these networks, in particular, encourage isomorph-
ism. Professional networks are inXuenced by the way universities and professional
training institutes develop and reproduce taken-for-granted organizational norms
among professional managers and staVspecialists in the diVerent functional areas
ofWnance, marketing, accounting, and HRM. To give an example, it is now very
common to assert that HRM should be business oriented and must add value.
Other aims are subservient to this dominant goal. Thirty years ago, in the Nether-
lands at least, one of the central purposes of HRM was the support of industrial or
organizational democracy. In Fig. 9. 2 , we give an overview of the way in which the
three mechanisms identiWed by DiMaggio and Powell ( 1991 ) have impacts on
HRM.
174 jaap paauwe and paul boselie