Review Questions

 What is Rational Choice?

 Why do people make decisions

based on different circumstances?

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 Objectives:
At the end of the session, the
students shall be able to:
1.Define Institutionalism
2.Explain Institutionalism
3.Provide examples of Formal and
Informal Institutions.

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 An approach that views
institutions as humanly devised
constraints that structure
political, economic, and social
interactions

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For Olsen (1992:7), an institution is the bearer of a
set of practices, a structural arrangement and a
configuration of rules, which determines what is
exemplary behavior.
Institutions are devised by individuals (micro-
level) but in turn constrain their actions.
They are part of the broad social fabric (macro-
level) but also the conduit through which day-to-
day decisions are actions are taken. Hence,
institution is a meso-level concept.
Institutions can be formal or informal.

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 Institutions.mp4

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 Question:
Can you give practices/policies that are
unique to a particular place/culture/country?

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 Activity:
 Divide the class into 3 groups
 What is your definition/ understanding of
formal and informal institution. Write
your answers on the board.

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 FORMAL INSTITUTIONS
Are normally established and constituted by
binding laws, regulations and legal orders
which prescribe what may or may not be.
Ex: business corporations, labor unions, and
religious organizations
provides "official" structure to society and
the economy.

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 INFORMAL INSTITUTIONS
Constituted by conventions, norms, values and
accepted ways of doing things, whether, economic,
political or social.
these are embedded in traditional social practices and
culture which can be equally binding (Leftwich 2006).
these are unwritten societal rules, norms, and traditions
Ex:money and marriage.

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 Institutions-Characteristics
Structure
 The most significant element of an institution.
 Structure may be either formal (legislature,
bureaucracy, political parties, mass-media) or
informal (a network of interacting organizations or
a set of shared norms).
 Institutionalism provides no place for individuals
and their interests.
 Rather it involves groups of individuals in some
sort of patterned interactions that is predictable
based upon specified relationships among the
actors.
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INSTITUTIONS-CHARACTERISTICS
(CONTD.)
Stability
 The existence of some sort of stability over time.
 Some legislator may decide to meet in a
committee meeting once in a room in the
parliament house. That could be very pleasant
but it would not be an institution.
 If they agree to meet routinely after a specific
period of time at the same place, that would
begin to take on the shape of an institution.

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 INSTITUTIONS-CHARACTERISTICS
(CONTD)

 Regulator of individual behavior

 Institutions must in some way (formal/informal)
constrain the behavior of its members. If we
resume with the trivial instance of the committee
meeting above, it may not be considered as an
institution if the members do not attach
importance and obligation to attend the meeting.
 Shared Values
 There should be some sense of shared values and
meaning among the members of the institution.
This view is central to the normative
institutionalism of March and Olsen

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INSTITUTIONS-CHARACTERISTICS
(CONTD.)

 Legitimacy
 Institutions involve legitimacy beyond the
preference of individual actors. They are valued
in themselves and not simply for their immediate
purposes and outputs. Institution’s stability of
over time may contribute to gain this legitimacy
(Lowndes: 1996:182).

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 Pinoy Henyo
Hospital Playground
Library
Church Terminal Office
Home Police Station Beach
Canteen Home for the aged Birthday
City Hall Jail Party
Mental Hospital Kitchen
Court Room
Maternity clinic Laundry Shop
School Wedding
Restaurant
Theater Airport Graduation
Mall Brgy. Hall JS Prom
Park Fire Department Parade

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 QUIZ
Choose 1 example of formal and
informal institutions. Explain its
nature and how it constrains
human interaction.

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 RUBRICS
Content 5 pts
Delivery 3 pts
Clarity of report 2 pts.
Total 10 pts

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