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Different subunits within an organization may confront different exter — W. Richard Scott

"Different subunits within an organization may confront different external demands. To cope with these various environments, organizations create specialized subunits with differing structural features. For example, some subunits may exhibit higher levels of formalization than others; some may be more centralized in decision making; some may be oriented to longer planning horizons. The more varied the types of environments confronted by an organization, the more differentiated its structure needs to be."
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W. Richard Scott
W. Richard Scott
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William Richard Scott is an American sociologist, and Emeritus Professor at Stanford University, specialised in institutional theory and organisation science. He is known for his research on the relation between organizations and their institutional environments.

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"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."
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W. Richard Scott