An institution is a structure or mechanism of social order governing the behavior of a set of individuals within a given community. Institutions are often seen as central to recurrent social problems and play a critical role in societies by establishing the framework within which social interactions occur.
Types of Institutions
They are usually divided into formal and informal institutions. Formal institutions are officially established rules and organizations governed by laws and official procedures, whereas informal institutions are unwritten norms and practices that guide social behavior and are enforced through social customs and cultural traditions.
The court system, which is governed by laws and official procedures to adjudicate disputes, is a formal institution. An example of an informal institution is the practice of tipping in restaurants, which is a social norm not mandated by law but widely observed to reward service.
Elements of Institutions
Institutions are social systems consisting of:
- Shared Purpose: A common goal or set of values that guide collective action. This purpose may be explicitly stated or implicitly understood, and can range from moral imperatives to functional necessities.
- Structured Interactions: A set of Informational Constructs of protocols, rules, norms, and practices that govern behavior and relationships within the system. These can be formal or informal, written or unwritten, and may evolve over time.
- Constituent Actants: A diverse array of interconnected components, including human actors, technological systems, physical infrastructure, and informational resources. These elements work together to fulfill the institution’s purpose.
Characteristics of Institutions
Institutions are complex adaptive systems
Blockchains as institutions
Dive Deeper
Topic relates to:
Blockchains as Institutional Components Protocols Blockchains Technology Definitions