Understanding Institutions and Their Impact

The video discusses how mutual expectations influence behavior in public settings, defining these expectations as institutions. It explains that when behavior aligns with these expectations, it is seen as legitimate, but deviations can lead to sanctions. The video uses enterprise succession as an example to illustrate how new leaders might unintentionally disrupt established behavior patterns. It emphasizes the importance of understanding and possibly changing these patterns through persuasion. Institutions are crucial in guiding social and economic activities by providing a framework for legitimate behavior.

What is a common challenge faced during commuting?

• Finding a parking spot

• Getting the last seat on the bus

• Avoiding traffic lights

• Remembering the route

What are mutual expectations in public settings also known as?

• Institutions

• Customs

• Regulations

• Traditions

How do institutions influence behavior in public life?

• By enforcing laws

• By setting mutual expectations

• By providing financial incentives

• By offering rewards

What challenge might a new boss face in an organization?

• Understanding financial reports

• Adapting to established behavior patterns

• Hiring new employees

• Setting new goals

What is required to implement institutional change?

• Legal knowledge

• Technical skills

• Persuasion skills

• Financial resources

What might happen if new practices are not accepted?

• The company will be fined

• Employees will leave

• The previous way of interacting remains

• The organization will fail

What do institutions allow us to decide on?

• Financial investments

• Cultural events

• Legitimate behavioral alternatives

• Legal matters

What are institutions based on?

• Financial incentives

• Mutual expectations

• Government policies

• Cultural traditions

What controls institutions?

• Traditions

• Rewards

• Laws

• Sanctions

What is the basis of our social and economic activities?

• Government

• Education

• Institutions

• Technology