Abstract
Organizations are embedded in broad institutional environments. As such, organizations may influence those environments and are certainly influenced by them. At the end of Chapter 5 we discussed how the political state as an institutional force influenced work organizations during the Fordist era with respect to their employment relations with their workers, directly by legislating rules on wages, work hours, and collective bargaining, and indirectly by legislating social welfare and security programs such as Social Security, unemployment insurance, and minimum wages that in effect tightened the labor market driving up the cost of labor for business. These are not the only examples of how the state has affected employers, employees, and labor markets. Nor is the state the only institutional environment in which organizations are embedded.
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Tausig, M., Fenwick, R. (2011). Institutional Factors. In: Work and Mental Health in Social Context. Social Disparities in Health and Health Care. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-0625-9_6
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