INSTITUTIONALIZATION
IN SERVICE PROVIDING COMPANIES: ANALYSIS IN RECRUITMENT AND SELECTION
CONSULTANCIES (R&S)
Carla
Milena Lordêlo Chaves
Sergipe
School of Business and Administration, Brazil
E-mail: carlalordelo@hotmail.com
Maria Conceição
Melo Silva Luft
Federal
University of Sergipe (UFS), Brazil
E-mail: ceicamelo.ufs@gmail.com
Ronalty Rocha
Universidade
Federal de Sergipe (UFS), Brazil
E-mail: ronaltyrocha@gmail.com
Submission: 9/8/2020
Revision: 9/18/2020
Accept: 10/13/2020
ABSTRACT
Research supported by institutional theory
contributes to organizational studies because they insert variables such as
shared values, search for legitimacy, and isomorphism in the analysis of
relationships between organizations and between organizations and the
environment. In this context, this article aims to analyze the stages of
institutionalization in consulting companies providing services in the
recruitment and selection of people (R&S). A qualitative-descriptive study
was performed with six recruitment and selection consultancies located in
Sergipe. The results demonstrated the administrative functioning of
organizations about the stages of institutionalization, revealing an institutional
scenario for these service providers, besides highlighting the main obstacles
to the sedimentation of the companies analyzed.
Keywords: Institutional theory; habitualization; objectification; sedimentation; recruitment and selection consultancies (R&S)
1.
INTRODUCTION
Different theories and approaches help in the process of
analysis, evaluation, and implementation of improvements in organizational
techniques, strategies, and structures, among them the institutional theory
deserves to be highlighted, because, among other possibilities, it allows
identifying environmental influences and organizational structures that
contribute to the creation and dissemination of behavior patterns (Nascimento et al., 2014).
On this subject, Scott (2014) explains that institutional
theory originated at the end of the 19th century in studies of economics,
political science, and sociology. Additionally, Suddaby
(2010) adds that the pillars of institutionalist theory in the study of
organizations were inaugurated by Phillipe Selznick in the work Foundations of
the Theory of Organization (1948), in which the author rejects rationalist
views and views institutions as independent variables. Posteriorly, the
conceptual premises of organizational institutionalism were established in the
works of Meyer and Rowan (1977), Zucker (1977), Meyer
and Rowan (1983), DiMaggio and Powell (1983), Tolbert and Zucker
(1983), and Meyer and Scott (1983).
Besides, in the field of organizational studies,
management, economics, and business are the areas that present the most studies
with applications of institutional theory, in which the themes organization,
institutions, and change (Carpes et al., 2015) are
the most worked. In addition to this understanding, Motke,
Ravanello and Rodrigues (2016) highlight business
economics, social sciences, and public administration as areas in evidence in
this field of studies.
In this scenario, the work of Greenwood, Raynard et al. (2011) is worth mentioning, as the most
cited article on institutional theory (Silva & Crubellate,
2016; Hsu et al., 2018), while seminal studies such as Meyer and Rowan (1977),
DiMaggio and Powell (1983), Friedland and Alford
(1991) and Thornton and Ocasio, (1999), remain influential (Silva & Crubellate, 2016).
Since then, institutional theory has been the main
current in research for the understanding of organizations (Greenwood et al.,
2008), being applied to explain the process of legitimation in institutions and
the understanding of patterns and processes of organizational change,
emphasizing the role of rules and conventions that influence the way
organizations and society behave (Soeiro & Wanderley, 2019).
Another way to observe and analyze institutional theory
is from its processes and stages of habitualization,
objectification, and sedimentation. On this subject, Tolbert and Zucker (2012) explain that institutional theory, through
the institutionalization process, is a theoretical tool to evaluate the stage
of consolidation of rules, norms, and processes in organizations, that is, the
more sedimented the processes, the more
institutionalized and consolidated organizational practices.
In this perspective, scholars such as Thornton, Ocasio,
and Lounsbury (2012) and Scott (2014) reveal that the
advance in the stages of institutionalization optimizes the administrative
functioning of organizations and ensures better business and performance
results.
In this context of the importance of the process and
consolidation of institutionalization in organizations, it is worth
highlighting the role of consultancies of recruitment and selection of people,
companies that attract and select employees to work in contracting
organizations and that must have standards, procedures, and institutionalized
techniques to properly perform their activities (recruitment and selection) and
provide high-quality services.
In this direction, Balasubramanian
(2014) points out that the role of consultancies in recruitment and selection
of people is to make this process effective enough for the contracting company
to achieve cost optimization and access to skilled labor. Also, to keep up with
the market transformations caused by digital transformations, such
consultancies had to improve existing resources and innovate the recruitment
and selection processes of people (Owusus-Ansah &
Nyarko, 2014).
As a result of the information presented, this paper
addressed the following research question: how are the institutionalization
steps configured in consulting firms in the recruitment and selection of
people? To answer this question, this study adopted the objective of analyzing
the stages of institutionalization, according to the model of Tolbert and Zucker (2012), in companies providing services in
recruitment and selection consulting (R&S) of people (employees).
Specifically, this research sought to identify
characteristic elements in the stages of habitualization,
objectification, and sedimentation. To achieve the proposed objective, a
qualitative-descriptive study was performed with six recruitment and selection
consultancies domiciled in Sergipe, Brazil.
It should be noted that, in Brazil, some of the latest
studies that addressed institutional theory discussed institutional pressure
for accounting reform in Brazil and Colombia (Neves & Gomés-Vilegas,
2019); described and compared institutional, strategic, and educational
characteristics of government schools in Brazil (Fonseca et al., 2019) and
identified the levels of sustainability and institutionalization practices in a
packaging industry (Kulak, Stefano & Kuhl, 2019).
On the international scene, Doherty, Chen, and Alexander
(2014) evaluated the relationship of franchises in China based on assumptions
of agency theory and institutional theory, while Mahanani,
Hariadi, and Roekhudinque
(2020) sought to understand, from remuneration policies, the process of
institutionalization in a university.
It is noticed, then, that although institutional theory
continues to promote relevant academic debates, the latest published studies
did not direct attention to the elements that make up each stage of the
institutionalization process, especially in consultancies companies,
reinforcing the gap for this study.
On the other hand, there is research on online
recruitment and online recruitment platforms, but few local studies on
recruitment and selection consultancies. Perhaps this scenario occurs because
large organizations have specific sectors for the management of people
performing the role of recruitment and selection, however, to meet the demand
of small and medium-sized companies, consultancies with specificity in
recruitment and selection were emerging, mainly because their processes can
occur digitally (Oksanen, 2018), a reality found in
the smallest state of Brazil with the emergence of these companies from 2010,
motivating, therefore, the practical investigation of the research.
Thus, the main theoretical contribution of this study is
in the presentation and discussion of elements and characteristics that
determine each of the stages of habitualization,
objectification, and sedimentation in consulting firms in recruitment and
selection. From a practical point of view, this study offers elements and
limitations inherent to each stage of institutionalization that can be
evaluated and implemented by other consultancies that seek to solve internal
problems, optimize the administrative and decision-making process, as well as
advancing to the sedimentation stage.
2.
INSTITUTIONALIZATION: CONCEPTUAL
ASPECTS
Initially, it should be noted that
the process of institutionalization occurs in organizations over time,
reproducing their history, of current or former employees, of the groups and
their interests, and also of the way the company adapts to its environment
(Pimentel, Carvalho & Pimentel, 2019).
Berger and Luckman (2005) complement
this understanding by explaining that institutionalization is a process that
develops historically, being supported by the legitimacy of its constituent
elements. Thus, this process covers the development of practices and, rules,
which include structuring and routinizing methods for the development of codes
that explain the organizational context and generate future patterns of action
(Thornton, Ocasio & Lounsbury, 2012).
For Doherty, Chen, and Alexander
(2014), the institutional theory focuses on the institutions and culture that
shape the business environment. Moreover, the institutional approach is the purposeful
action of individuals and organizations aimed at creating, maintaining, and
developing institutions (Alvesson, Hallett & Spicer, 2019).
On this subject, Aksom,
Zhylinska, and Gaidai
(2020) explain that, from the institutional approach, corporations operate in
environments that receive different levels of pressure that encourage the
adoption of appropriate and efficient behaviors, conditioning organizations to
follow rational rules and directions that increase the chances of survival,
protecting structures, facilitating access to resources, in addition to
increasing the relevance of these companies in the business environment.
Similarly, Yang and South (2014)
argue that institutional theory is essential for organizations to follow
established rules, norms, and belief systems to achieve legitimacy, boost
social, economic, and political resources, and improve the company's
performance. Thus, institutional theory helps to examine the influence of
several factors, such as the impact of sociocultural aspects and the role of
stakeholders' demands on organizational practices (Yawar
& Kauppi, 2018).
In this context, Scott (2014)
defends institutionalism from a sociological perspective, according to which
institutions are formed and structured by regulatory, normative, and
cultural-cognitive elements associated with activities and resources that
enable stability and meaning to social life. In this sense, the regulatory
pillar emphasizes the importance of standardization processes, the establishment
of rules, monitoring, and sanctioning of activities in the functioning of
institutions (Scott, 2014). Thus, institutional regulatory systems establish
behaviors through the implementation of rules, supervision, corrections, and
penalties.
The normative aspect highlights the
social obligation and normative rules for the adoption of new structures (Palthe, 2014), inserting a prescriptive and appreciative
approach in social life, emphasizing moral conceptions, and cultural
conformity. Finally, the cultural-cognitive pillar emphasizes the role of the
cultural-cognitive elements of institutions and the shared values that
represent the nature of social reality and how meanings are constructed (Altayar, 2018).
On the other hand, it is necessary
to understand that institutional theory is divided into three guidelines: the
old institutional economy; the new institutional economy, and the new
institutional sociology. On this subject, Dequech
(2002) explains that, in the former institutional economy, the institution is
the main object of analysis. In this perspective, institutional theory develops
research on the relationships between individuals within organizations,
investigating attitudes that produce new social realities capable of inserting
and consolidating changes.
The new institutional economics, in
turn, seeks to achieve competitive advantages based on management focused on
efficiency, whose minimization of transaction costs is revealed as the main
aspect in determining the organizational structure (Augusto, Souza & Cário, 2014). Therefore, Costa, Sprenger,
and Kronbauer (2019) explain that, from the
perspective of the New Institutional Economy, the theory focuses on transaction
costs and performs an institutional analysis of how agents behave in the
environment in which they operate, permeated by market imperfections.
Finally, on the new institutional
sociology, there is an assumption that internal organizational structures and
procedures are influenced by external factors and not only by the objectives of
minimizing costs. Moreover, in this institutional characteristic,
organizational aspects are adjusted to increase compatibility with the
environment (Costa, Sprenger & Kronbauer, 2019).
For this reason, Tolbert and Zucker (2012) explain that institutionalization is a typification of actions usually made by specific types of
actors. Thus, to understand the process of institutionalization in the
organizational context, Tolbert and Zucker (1999,
2012) divided it into three phases: habitualization (pre-institutional),
objectification (semi-institutional), and sedimentation (total
institutionalization) discussed below.
Institutionalization Process
According to Tolbert and Zucker (1999, 2012), the occurrence of factors external to
the organization generates the need for innovation. In response to this need,
companies begin the stage of habitualization,
characterized by the search and implementation of new structural arrangements
to solve specific organizational problems.
In this sense, different organizations
can adopt similar innovations because they are subject to the same
organizational context (Wisdom et al., 2014), stimulated by causation forces
such as technological changes, legislation, and market forces (Roth, 2015).
This fact can lead to the
understanding of isomorphism or imitation (Dimaggio
& Powell, 2005) when the company adopts solutions developed by other
organizations because of 1) political influence and need for legitimation —
coercive isomorphism; 2) standardization of responses to uncertainty — mimetic
isomorphism; and 3) professionalization — normative isomorphism (Li & Ding,
2013).
Regarding coercive isomorphism, Kaupi (2013) indicated that this modality of isomorphism is
a consequence of society's expectations (Dimaggio
& Powell, 1991) and the result of the formal and informal pressures that
organizations exert among themselves. In this context, organizations are
pressured by different stakeholders, such as customers, government, and
competitors, to absorb and implement social, environmental, and economic
standards (Sarkis, Zhu & Lai, 2011).
On the other hand, mimetic
isomorphism is a consequence of the uncertainties faced by companies, which
leads them to the practice of imitation. Thus, environments with a higher
degree of uncertainty often model mimetic isomorphism practices (DiMaggio &
Powell, 1991). In this perspective, Miemczyk (2008)
explains that mimetic isomorphism occurs among institutions seeking legitimacy,
which mimic successful strategies to reduce the risk of adoption of
little-explored solutions. Moreover, the dissemination of practices perceived
as legitimate is typical in companies within a connected network, where the
dissemination of practices is easier (Yawar & Kauppi, 2018). Furthermore, Kaupi (2013) warns that so-called excellent practices do
not offer the same results in all organizations due to contextual divergences,
so mimetic isomorphism can generate unwanted results.
As for normative isomorphism,
DiMaggio and Powell (2005) clarify that normative actions result from
professionalization, which occurs through formal education and legitimation on
a cognitive basis produced by university specialists and the network of
professionals in which experts are inserted. Thus, the concept of
professionalization refers to the collective struggle of the members of an
occupation to define the conditions and methods of their work, to control
production, and to establish a cognitive and legitimizing basis for
occupational autonomy (Altayar, 2018).
In this way, León e Martinez (2011)
argue that the greatest advantage of habitualization
is the increase in the predictability of actions, which can save time, effort
and reduce the effects of environmental pressures, additionally, solutions
tested with positive results by other organizations can stimulate imitation as
a diffusion process.
The second phase of the
institutionalization process is objectification, achieved when the meanings
imposed on the usual action are generalized and become socially shared. This
stage, which is that of semi-institutionalization, is associated with the
diffusion of the structure created previously, this stage there is the
valorization of the structure and its increasing adoption in organizations,
assuming a permanent and disseminated character (Tolbert & Zucker, 2012).
Also, the objectification process
involves the development of social consensus among organization managers on two
causative forces: inter-organizational monitoring and theorization (Greenwood, Suddaby & Hinings, 2002).
On this subject,
inter-organizational monitoring proposes that organizations can use evidence
obtained from various sources to assess the risks of the adoption of new
structures. In this sense, the objectification of the structure is partly a
consequence of monitoring the actions of competitors and efforts to increase
organizational competitiveness (Raynard, Johnson
& Greenwood, 2014). The main objective of theorization is to describe
organizational failures, for which innovation is a solution (Tolbert & Zucker, 2012).
Another relevant point in the
objectification phase concerns the presence of champions, a set of actors
involved with the structure, who have some degree of interest in its
advancement and dissemination. Champions perform two major theorization tasks:
definition of a generic organizational problem, which includes the
specification of a set or category of organizational actors characterized by
the problem; and justification, with logical and/or empirical bases, for the
adoption of a structural arrangement as a solution (Tolbert & Zucker, 2012).
In the last phase, that is, in
sedimentation, there is a total institutionalization, because the actions
acquire the condition of exteriority and are transposed to other contexts,
consolidating the structure for the members of the organization (Vailatti et al., 2017).
At this stage, there should be low
resistance of opposition groups, promotion, and continuous cultural support and
a positive relationship as the desired results (Rezende, Guerreiro
& Dalmácio, 2012), therefore, the three main
factors for the characterization of the sedimentation phase are the positive
impacts – results associated with the structure; group resistance – people who
are affected by the structure; and advocacy of interest groups – people in
favor of structural change (Russo, Parisi, Megliorini & Almeida, 2012).
3.
METHODOLOGY
Regarding the approach, this is a
qualitative study, since the results are evaluated based on the perception of
the agents involved in the research (Creswell, 2010) — consultancy managers. As
for the objectives, this is a descriptive study, since the description,
understanding, and interpretation of existing mechanisms (Neuman,
2013) was carried out from a pre-established set of categories in the process
of institutionalization in R&S consultancies.
The strategy adopted was the study
of multiple cases, since the research involved six R&S consultancies to
analyze the phenomenon and characteristics (Merriam, 1998; Yin, 2015) of
institutionalization in these businesses. The criteria for the selection of
consultancies were the provision of services in recruitment and selection of
people; domiciled in Sergipe; highlight in the local market. Thus, considering
the principle of theoretical saturation (Eisenhardt,
1989), 6 cases remained.
We used a semi-structured interview
script elaborated from the literature review with the following analytical
categories: characterization of consultancies and institutionalization stages,
as proposed by Tolbert and Zucker (1999, 2012) and
presented in Table 1.
Table 1:
Categories and north-class issues
|
Category of analysis |
Guiding questions |
|
Characterization of
consultancies |
• Is your consultancy an individual company or a business society? • How long has the company been in operation? • What are the main business activities in your company? |
|
Habitualization |
• Was there any fact external to the consultancy that led to the need for
innovation? If so, what happened and how did the process take place? • How does the consultancy identify trends in the R&S market? • Describe how consultancy perceives external pressures. • Does the company usually benchmark with other consultancies for
socialization and search for new knowledge? Comment on that. • Are the services provided by your consultancy important to society? Do
you believe that your company has credibility in the community where it
operates? |
|
Objectification |
• Is there a concern to evaluate the practices adopted by other
consulting companies regarding the problems faced or improvements obtained?
How is this process done? • How does the process of identifying problems in consultancy take place?
Is there a group that has this responsibility to monitor the market? If so,
explain their performance and how solutions are sought. • What are the most significant improvements or changes that have
occurred in your consultancy? And how was organizational performance
perceived after these improvements/changes? |
|
Sedimentation |
• Do employees believe in the company's projects and are always looking
for improvements? Are there or have there been groups of people who support
and/or defend the way your company operates? If so, what groups, why, and how
do you deal with it? • Are there or have there been groups of people
(employees/customers/competitors) who resist the way your company operates?
If so, what groups, why, and how do you deal with it? • Throughout the company's existence, has there been organizational
growth? Report. • How do you consider that the results achieved by the consultancy are
satisfactory regarding your returns (financial, customer recognition, a good
relationship with candidates...)? • Do you consider that your consultancy is a reference in the market? If
so, report the trajectory. |
Source: Developed by the authors (2020)
The interviews were applied and
recorded in person and with the help of online tools to managers (founders) of six R&S consulting
companies located in Sergipe, who received the fictitious appointment of A, B,
C, D, E, and F. For the analysis of evidence, the content analysis technique
based on Bardin (2006) was used, performed as follows:
1) Pre-analysis: Hearing and transcribed the
content of the interviews accompanied by a preliminary and fluctuating reading
of the content reported by the managers to systematize the initial ideas
exposed by the interviewees.
2) Exploration of the material: analytical
reading of the transcription of the interviews with the identification and
construction of categories, terms, and elements related to the practice of
isomorphism and stages of institutionalization. In addition, the keywords were
highlighted in each paragraph of the transcription of the interviews and, based
on the theoretical framework elaborated, these terms were grouped according to
themes related to isomorphism (mimetic, coercive, and normative), as well as
the stages of habitualization, objectification, and
sedimentation.
3) Treatment of results, inference, and
interpretation: the results obtained were examined from the assumptions of
institutional theory and management studies, with the corresponding comparative
analysis between cases – cross-case analysis (Eisenhardt,
1989) and presentation of inferences from the researchers.
Regarding the validity of this
study, Yin (2015) explains that the validity of a case study can be judged
through three tests: construct validity, external validity, and internal
validity. The construct validity in this research was due to the chaining of
evidence reported by the entrepreneurs, as well as by reviewing the transcripts
of the interviews with the key informants.
The external validity, in turn,
performs analyses on the generalization of the findings in research. Because
this is a qualitative study, it was verified the external validity comparing
empirical findings with theoretical postulates, as well as by the analytical
generalization of the results. The internal validity is applied to quantitative
studies (Yin, 2015), a methodological configuration not adopted in this
research.
4.
ANALYSIS AND DISCUSSION OF RESULTS
The description of the findings of
each consultancy submitted to the study follows the order of the categories of
the analysis presented in Figure 1 regarding the aspects of habitualization,
objectification, and sedimentation. The first reinforces the search for
isomorphic practices, environmental stimuli (technological, legislation, and
market forces), and the adoption of new structural arrangements. The second
depicts inter-organizational monitoring and problem theorization. Finally, the
sedimentation elements sought to identify interest groups, group resistance,
and positive impacts.
In this perspective, Figure 2
presents the characterization of the consultancies under investigation.
Figure 2:
Characterization of companies
|
Consultancy |
Property |
Foundation |
Activities |
Interviewed |
|
A |
Single owner |
2015 |
Recruitment,
selection, training, and personnel development. |
Owner |
|
B |
Single owner |
2017 (still informal) and formalized in 2018 |
Management of results
culture, recruitment, and selection. |
Owner |
|
C |
Single owner |
2014 |
Recruitment and
selection. |
Owner |
|
D |
Society (two owners) |
2011 |
Provision of
multidisciplinary health services, recruitment, selection, training, and
development. |
Owner partner |
|
E |
Single owner |
2016 |
Recruitment,
selection, and development. |
Owner |
|
F |
Single owner |
2016 |
Recruitment and
selection. |
Owner |
Source:
Developed by the authors (2020).
4.1.
Elements and phase of the institutionalization
process
Considering the institutionalization
process proposed by Tolbert and Zucker (1999, 2012),
this subsection aims to discuss and analyze aspects and characteristics linked
to each of the stages of habitualization, objectification,
and sedimentation, for the subsequent framing of these companies in stages of
institutionalization.
4.2.
Habitualization
The phase of habitualization
or pre-institutionalization occurs from environmental stimuli, such as
legislation, technological changes, and market forces, which lead to the
practice of isomorphisms, the development of
standardized behaviors for the solution of specific problems and, consequently,
give rise to new structural arrangements (Tolbert & Zucker,
1999, 2012).
In this sense, initially sought to
investigate practices of coercive, normative, and mimetic isomorphism. As for
mimetic isomorphism, interviewee A reported that the company has
"partnerships with municipal agencies to receive resumes, as well as the
exchange of experience with similar companies". Moreover, mimetic
isomorphism was identified in the speech about "closing the office and
using co-working spaces or in the client's space to reduce costs and invest in
constant courses and updates for our employees".
Additionally, about isomorphism
practices and environmental stimuli, interviewee B stated that she does not
perceive external pressures for the use of administrative techniques,
processes, or strategies. Regarding the professionalization process, characterizing
normative isomorphism, interview B emphasized that "in general, we
participate in online or face-to-face training at least four times a
year". Commenting on environmental stimuli, the interviewee of Consultancy
C reported that the company "seeks to update itself on the market trends
of digital tools in the area of R&S through
Linkedin
[digital social network of business] and magazines specialized in people
management".
In Consultancy D, normative
isomorphism was identified in the investment in courses, updates, and
continuous training of employees, as highlighted:
This is related to the way I train
people. We hold regular meetings, analyze the profiles of all our employees,
and draw up a list of activities that each needs to deliver and give feedback
when I realize that someone needs development. When I see some training that is
consistent with what someone on my team needs, I seek to insert it into our
schedule. I want everyone to grow up so I can grow up with them (Interviewee
D).
Beyond that, it should be
highlighted that all the consultancies surveyed reported the frequent search
for technological tools for adaptation of processes, which characterizes the
response to technological environmental stimuli and market forces. Moreover,
compliance with labor legislation, mentioned by all interviewees, is a common
element of coercive isomorphism. Regarding the reaction to environmental
stimuli, the interviewee of the consultancy E highlighted that "I do not perceive
the performance of these pressures in my business and I prefer to act according
to my knowledge", attributing little relevance to external pressures for
the management of the company.
As for the generation of new
structural arrangements, according to consultant A "the most significant improvements
and changes that occurred in the company were the results of the implementation
of technological tools, which promoted agility, clarity, and speed in the
recruitment and selection processes, and also in communication within the
consultancy".
Furthermore, it was noted in the
statements of the interviewee of Consultancy B, that the company has been
working on new structural arrangements through participation in WhatsApp groups
and networking with professionals in the area of people management, as well as
accounts on Instagram to discuss topics in the area. Consequently, the
information obtained in these environments is redirecting, and adjusting the
internal functioning of this company.
Interviewee D drew attention to the
future implementation of new structural arrangements using her technological
tools, because, according to this consultant "we seek to know the existing
technological tools in the area of people management and we intend, soon, to
develop our digital tools".
In consultancy E, according to the
interviewee, the adoption of new arrangements was based on the "need for
internal changes to meet confidential processes". Besides, she reported
interest and research on market trends, especially about the use of digital
tools in R&S. In this context, the interviewee of Consultancy E reported
that the expressiveness and scope of digital social networks, made the company
work with the "dissemination and performance of consulting services on
Instagram [which] helped the growth of the company and enabled the expansion of
recruitment and selection processes".
Still related to the generation of
new structural arrangements, interviewee F mentioned the "need for
internal changes to meet the demands of the Consultancy with higher
productivity, because we went through a transition between manual processes to
the digital platform".
All the cases presented reveal that,
in the habitualization phase, specifically about
technological environmental stimuli, there is a frequent concern with the
monitoring and implementation of digital trends for recruitment and selection
(R&S) of employees. This finding is supported by Rodríguez-Sánchez,
Montero-Navarro, and Gallego-Losada (2019), who
reinforce that technological innovation fostered by the use of the Internet and
social networks in the business context has changed the recruitment and
selection processes in organizations, allowing to select more qualified
candidates and provide companies with a sustainable competitive advantage.
In this context, it is worth mentioning
that the changes resulting from the imposition of legislation are presented in
labor legislation (coercive isomorphism) and that, although not specifically
mentioned by the interviewees, market forces encompass technological changes,
since technology behaves as an imperative in these businesses.
Also concerning the habitualization stage, it was noticed that the generation
of new structural arrangements was explicitly presented only in consultancies B
(WhatsApp groups, networks, and Instagram accounts); And (suitability for
confidential processes, Instagram
account) and F (implementation of the digital R&S platform), in other
companies, the new structural arrangements are implicitly represented by the
adoption of technological trends.
In summary, regarding the stage of habitualization, it was noted that in the consultancies
participating in this study, internal changes occur from the identification of
needs, either to adapt to the behavior of other organizations that adopt more
agile and improved services and solutions, due to the need for internal
adjustments to monitor the changes that happen in the area of information
technology or to better meet the demands and internal processes of the company.
In addition, it was noted that consultancies always act following contingencies
and environmental events, not always anticipating situations, a finding that
requires the attention of consultants, since the better the management of
external environmental factors, the higher the level of business performance
(Rizal & Suhadak, 2017).
These results corroborate the
findings of Yilmaz and Flouris (2017) and reinforce
that the political, social, and cultural environment influence the definition
of strategies, the adoption of structures, and the design of organizational
processes in business institutions. Moreover, the results obtained expand the
findings of Haider (2014) that organizations with
similar environments adopt similar processes, technologies, political
structures, and power relations, in the case of the companies surveyed, the
similarities are expressed in the verification and implementation of digital
trends in the recruitment and selection process.
Similarly, the findings identified
in the researched consultancies corroborate the studies of Rees and Smith
(2017) and Seyfried, Ansmann,
and Pohlenz (2019) highlighting that the
environmental pressures received by organizations stem from institutional
mechanisms called coercive, mimetic, and normative isomorphisms,
which act to make organizations more homogeneous in structural and procedural
terms.
It is worth mentioning, according to
the interviewees' reports, that the simultaneous practice of mimetic, coercive,
and normative isomorphisms was not identified in any
of the evaluated consultancies. Additionally, the influence of labor legislation
is highlighted as an element of coercive isomorphism; the practices of
participation in courses, updates, and professionalization through face-to-face
and online courses, as well as the absorption of information and knowledge in
digital social networks and specialized magazines, such as normative
isomorphism behaviors, reinforcing DiMaggio and Powell's understanding (1983)
that organizations tend to use lines of action already defined in society and
that allow them to ensure their survival and legitimacy in the market.
The findings presented earlier
reinforce the perception of Seyfried, Ansmann, and Pohlenz (2019), as
well as Li and Ding (2013) who state that the isomorphic behavior adopted by
organizations is also a form of self-defense to face environmental changes and
living with problems for which solutions have not yet been found.
4.3.
Objectification
In this category,
inter-organizational monitoring and theorization were analyzed. In the
inter-organizational monitoring, analyses of competing companies are performed
to search for legitimate actions (Dimaggio &
Powel, 1991; Capellari, Stefano & Castro, 2019),
while the theorization process evaluates actions to solve problems (Tolbert
& Zucker, 1999, 2012).
As for the practices of
inter-organizational monitoring and application of benchmarking with other
consultancies for socialization and knowledge of new administrative techniques,
interviewee A reported that at the beginning of the activities there was a lot
of resistance and lack of openness of competing companies, but currently, this
exchange happens naturally, as reported:
I have strong partners who also work
in the same segment and we have come together in many moments. I have two
competing companies that also do recruitment, selection, and training, but we
see ourselves as partners and not as competitors. We talk a lot, exchange
experiences, give tips on how to do the work (Interviewee A).
Regarding inter-organizational
monitoring, especially techniques and administrative processes, interviewee C
stated that "we do not seek this information, but I believe that it is
necessary to perform [interaction with other companies], but we monitor the
needs for improvement through customer feedback after the service provided. On
this subject, interviewee D reported concern about evaluating the practices
adopted by other consulting companies, she said:
[We monitor the market] for the problems faced
or improvements obtained, but the Sergipe market is very closed and most
companies in this segment do not work with information sharing and cooperation
[...] this is a culture that still needs to be disseminated and more accepted
here in the region [Sergipe] (Interviewee D).
Consultant D also stated that she is
highly copied in her processes and that, although she maintains contact with
reference professionals and partner companies to exchange experiences, has
never adopted behaviors or strategies of competitors.
Regarding theorization, interviewee
A reported that "I often [identification] the most common problems and the
company has the support of some advisers, who are people outside the
consultancy and who are attentive to the company's movements, providing
feedback and guidance". According to interviewee D, the process of
identifying problems in the consultancy is carried out by her, however, there
is the practice of involving employees. On this theorizing practice, she
reported that:
Problem identification is done by me
and the staff to identify the most urgent needs. In addition, we hold an annual
strategic planning meeting to listen to people working in the company, as well
as occasional meetings to align expectations (Interviewee D).
In consultancy E, the theorization
process to identify problems occurs through the "exchange of knowledge
between those involved in the execution of selection processes". In the
case of consultancy F, the interviewee reported that "the identification
and survey of problems are done by me, we also work with the preparation of
action plans, in addition to monitoring the reactions and opinions of customers
as a thermometer to identify problems".
On the objectification stage, it was
noted that inter-organizational monitoring is carried out superficially, since
most companies (A, D, E, and F), although with different speeches, perform only
the observation of similar companies. Another fact that draws attention is the
non-description of inter-organizational monitoring actions in consultancies B
and C. On the other hand, it was found that the internal evaluation of
problems, usually performed by entrepreneurs, is the main theorizing mechanism
in R&S consultancies, especially in companies A, B, D, E, and F.
In general, in relation to
inter-organizational monitoring, the interviewees answered that there is a lot
of local difficulty in this practice and that knowledge exchanges only happen
when there is personal proximity between the consultancy owners. There were
even reports of a lack of confidence about the administrative techniques
adopted by the competition, allowing only the eventual exchange of knowledge.
This finding is validated by Chan,
Chong, and Zhou (2012), since the exchange of knowledge between organizations
depends on the existence of minimum levels of trust among the managers involved
to dissolve conflicts, facilitate information sharing, and strengthen long-term
partnership strategies.
Regarding the theorization process,
the majority reported that the problem-solving activity is concentrated in the
consultancy owners. However, it is worth mentioning that the existence of
external advisers (consultancy A), customer feedback (consultancy C),
comparison with partner companies (consultancy E) and development of action
plans based on customer feedback
(consultancy F) are also actions considered in the companies surveyed.
In addition, in consultancy D, for
the theorization process, the teams are involved and give their opinion on the
situation, which provides a basis for decision making. On this subject, Mutai, Cheruiyot and Kirui (2015) argue
that the participation of employees in the decision-making and problem-solving
process promotes a significant increase in the quality of decisions, in
addition to improving the organizational climate.
Finally, according to the interviewees'
reports, there is a simple process of identifying problems and seeking
solutions, which only happens when the situation requires it. This finding
requires more attention from the companies analyzed since the planning prevents
organizations from being surprised by environmental events and/or contingencies
capable of affecting their business (Cancellier, Blageski Junior & Rossetto,
2014).
4.4.
Sedimentation
Finally, there is the stage of
sedimentation or total institutionalization, which is characterized by the
perpetuation of the structure for a long period, by the low resistance of the
opposition groups, and by the support of the members for the positive results
achieved (Abeygunasekera, 2019). Tolbert and Zucker (1999, 2012) state that, as the stages of
institutionalization progress, organizational actors establish stronger social
relationships, norms and procedures are better understood, and organizational
identity is widely disseminated among members (Haack, 2012).
Regarding the support of members and
the advocacy of interest groups, interviewee A stated that:
Improvements in processes with the
use of digital tools are perceived by the groups involved with the company,
whether partners, employees, customers, or candidates, and these groups react
positively to the application of methodologies that interconnect technology and
practice [...] We also have some external advisors and service providers who
work with the company and are people who believe and support the company's
projects, in addition to defending our way of acting (Interviewee A).
Highlighting the performance of
interest groups, consultant D reported that there are groups of people who
provide support and / or defend the way the company operates, she stressed that
it has noticed a positive growth in the reputation of the company in the last
four years, " bringing the credibility and trust of the people involved,
whether customers, candidates or employees ".
Regarding the resistance of interest
groups, consultant A mentioned the resistance of some groups to the way the
company operates, highlighting that the lack of support comes from people who
adopt more traditional professional performance. The consultant's speech, in
this sense, is as follows:
For example, in our work, we always
try to bring innovative things and there are professionals here in the State
[Sergipe] who have this more methodical way of acting, so if there is a lot of
dynamics or technology involved in the process, it ends up scaring a little and
creating some resistance (Interviewee A).
Asked about possible groups of
people who resist the way the company operates, interviewee
F said she has dealt with candidates resistant to the use of the digital
platform. He pointed out:
Some people think that by paying to
be on the platform, the consultancy should insert it into the job market. But
this is not how it works, it will depend on a set of variables, such as the
effort and performance it presents when participating in a selection process,
its experiences, and skills, for example. So, some people end up showing some
resistance (Interviewee F).
Regarding the positive impacts
perceived by interviewee A, the consultant explained that "the results
achieved are adequate in terms of return in general, but in the financial
aspect the projection is still not satisfactory, but we are ensuring the
maintenance of activities". Regarding the perception of positive impacts,
this interviewee added:
Our company is consolidated in the
market and I am aware [that the company's growth] is the result of a constant
process of reinventions, and as for the intention to continue consultancy in
the long term, I believe in the growth of the company on a regional scale in
the Northeast, with the participation of new partners, and market gain (Interviewee
A).
On organizational growth and
development as positive impacts of the business management model, interviewee B
stated that "the idea is that in two years the company will make a
transition to acting only with coaching techniques and executive development,
no longer offering services [recruitment and selection] that are in our
portfolio today."
Interviewee B also stressed that the
perceived positive impacts on her business are the result of her
academic-professional training and performance outside the Sergipe capital. She
said that "our consultancy is the only one in the interior where we work,
and because I have experience in psychology and coach, in addition to
experience in large companies, I have credibility with customers and this
provides business growth."
As for the positive impacts on the
sedimentation stage, interviewee C mentioned "we are among the four most
sought-after consultancies in the Sergipe market and our investment planning
and strategic actions detail actions until the year 2021". On this
subject, interviewee D reported that, throughout its existence, the company has
experienced organizational growth, because "there has been an increase in
the portfolio of customers and its loyalty shows growth, as well as the
financial behavior of the company, with satisfactory results".
Interviewee D also stressed that
there is an intention to continue consultancy in the long term and that she is
reviewing the company's business model. "I'm very attuned to what's
happening in the world and I've seen the need to review my business model for
the company to grow independently of me," she said.
For interviewee E, the positive
impacts are perceived in the credibility with its clients and in the market in
which it operates, reinforcing the intention of continuity of consultancy in
the long term. For her, "the processes carried out are increasingly
consolidated and the future is to focus only on strategic work and not so much
on operational work as it currently occurs."
For the sedimentation stage,
attention is drawn to the fact that consultancies B, C, and E
do not identify groups of resistance to the operation of these businesses,
allowing us to infer that these companies have directed little attention to the
recognition of these groups, which is harmful because the resistance of the
groups prevents the perpetuation of good results and the consolidation of new
structures (Sornberger et al., 2019).
Thus, in general, customers,
candidates, and employees are among the resistance groups in the other
companies consulted. A similar situation is detected in the identification of
interest groups in which customers, employees, candidates, and service
providers (Donadone, Silveira
& Ralio, 2012) were the most mentioned.
In this context, it is worth
mentioning that the joint action of customers, candidates, and employees is
essential for the consolidation and sedimentation of companies because the
appropriate interaction between these groups stimulates innovation, customer
loyalty, the development of products and services and improves financial
results (Subramanian, 2018). Moreover, it is worth highlighting the essential
role of customers for the growth and sedimentation of the business, whether as
defense agents of the company and members of interest groups, since, in
addition to buying more, customers function as a network to reach other potential
consumers, sharing experiences (Hague & Hague, 2016.)
In relation to the positive impacts
perceived by the entrepreneurs consulted, the organizational growth of the
companies stands out, mainly represented by the increase in the number of
clients served. On this subject, Khadka and Maharjan (2018) explain that the company's growth is not
only supported by the increase in the number of customers served, but mainly by
offering innovative and quality products and services.
4.5.
Institutionalization in Recruitment and
Selection Consultancies (R&S)
A higher incidence and/or absence of
elements and practices were found in the evaluated consultancies that allowed
the framing of these businesses in the phases of habitualization,
objectification, and sedimentation. Thus, consultancies B and C were classified
in the habitualization phase, because despite
presenting elements of the following steps, they do not develop
inter-organizational monitoring actions, demonstrating that they are not yet
objectified.
Companies D and E, in turn, can be
classified as objectified, because although they present some components of the
sedimentation phase, they have not yet identified groups of resistance to the
operation of the business, nor have they built strategies to mitigate the
resistance of these groups (after their probable appearance).
It is worth highlighting the
situation of company F, which, although it presents elements belonging to all
stages of institutionalization, was framed in the objectification phase,
because, with the recent adoption of the digital tool for recruiting and
selecting people, it has not yet built a generalized organizational identity
among members and interest groups (Haack, 2012). Finally, company A was the
only one in the sedimentation phase, as it has robust elements and
characteristics of all stages of institutionalization.
The synthesis of the results
obtained in the companies surveyed is presented in Figure 1, which presents an
analytical structure with the main practices and elements of the
institutionalization stages in recruitment and selection consultancies
domiciled in Sergipe.
Figure 1: Analytical structure of
institutionalization processes in recruitment and selection consultancies
(R&S).
Source:
Developed by the authors of Tolbert and Zucker (1999,
2012).
The analysis of the proposed
analytical structure allows us to understand that, in the phase of habitualization, recruitment and selection consultancies
receive technological environmental stimuli (digital trends), legislation (work),
and market forces, demonstrated by the influence of specialized magazines and
websites. In general, environmental stimuli led to isomorphic behaviors
operationalized in partnerships with public agencies and the use of coworking spaces
(mimetic isomorphism), courses, updates and online and face-to-face
training (normative isomorphism) and respect for legal labor standards
(coercive isomorphism) online
The receipt of environmental
stimuli, as well as the organizational reactions of the consultancies of
recruitment and selection of people, lead to the adoption of new structural
arrangements, organized mainly in a digital environment, specifically with the
adequacy of confidential processes to serve customers, acquisition, and
implementation of services of digital platforms, as well as participation in
WhatsApp groups, networking, and
creation of Instagram accounts. In this context, it is worth mentioning that
digital transformation, as happens in the consultancies studied, is a chance to
improve the commercial performance of companies with limited access to markets
and sources of financing (Popović-Pantić, Semenčenko & Vasilić,
2019).
The implementation of new structural
arrangements qualifies these companies to experiment and apply procedures to
objectify their business through theorization and inter-organizational
monitoring, which are superficially applied because recruitment and selection
consulting companies establish partnerships restricted to the exchange of
information and observation of generic competition practices. On this subject,
some of the interviewees ensured that the local market (Sergipe) does not
assume a cooperative posture, however, none of them reported an effective
initiative to change this scenario, which contributed to the majority of the
companies studied being framed in the stages of habitualization
and objectification.
On the other hand, these businesses
are a little more advanced in terms of theorization processes, as they consider
evaluating owners and external advisers to identify broader problems, and the
participation of employees, customers, and service providers for guidance and
feedback on operational procedures. Thus, this group of agents acts as a
platform to receive information and collect ideas from a wide range of stakeholders
that contribute to proper planning, as
they reveal which supplies and engagement are necessary for the progress of the
business (Lehtinena,
Aaltonenb & Rajala,
2019), which results in the elaboration and/or adjustment of action plans.
After partial experimentation of
components of the objectification stage, recruitment and selection
consultancies advance in the characteristics of institutional sedimentation,
especially in the defense of interest groups, represented by clients,
employees, candidates, and partners (service providers), these being the main
stakeholders for the operation of these businesses.
The identification and action
against the resistant behavior of some groups is a flawed and very restricted
activity in consultancies, because, except professionals with limited capacity
to use digital tools and customers eager to enter the labor market, these
companies make no effort to recognize and minimize negative behaviors of these
groups. We highlight the perception that the absence of resistance of groups
can be the result of the limited attention of managers to these behaviors so
that the greater direction to the perceptions and reactions of interest groups can
be an instrument for optimization of administrative processes and evolution to
the sedimentation stage.
For the sedimentation stage, there
is also a growing perception that clients, candidates, and partners (service
providers) constitute interest groups, however, the absence of institutional
agents such as government agencies, educational institutions, and parastate entities limits the consolidation and
sedimentation of the organizations evaluated.
Finally, organizational growth based
on the largest number of clients served and the position of reference in the
market is the main positive impact on the consulting business.
5.
CONCLUSIONS
The lens of institutional theory has
been recognized as an important theoretical tool for evaluating organizational
practices, as well as the stage of administrative consolidation of
organizations. In this context, this research sought, through a
qualitative-descriptive study, to analyze the stages of institutionalization,
according to the model of Tolbert and Zucker (1999,
2012) in recruitment and selection consulting companies (R&S) resident in
Sergipe, Brazil.
It is concluded, then, that
unsatisfactory inter-organizational monitoring, associated with the limited
identification of resistance of groups, as well as the inexpressive elaboration
of strategies to mitigate the performance of resistance groups are the main
obstacles to the sedimentation of consulting companies in recruitment and
selection of people.
Consequently, the main limitations
of this research are represented by the restricted practice of
inter-organizational monitoring, limited participation of different agents
(champions)in the processes of theorization, and non-identification of
resistance groups in part of the companies surveyed, which limited the analysis
of these elements in the process of sedimentation of consultancies.
The results presented in this
research do not exhaust the possibilities of analysis on the subject, so new
studies may: analyze the role of technological pressures as determinants or
influencers of habitualization; to investigate the
limiting and potentiating elements of inter-organizational monitoring, as well
as to investigate the contribution of inter-organizational monitoring to reach
the sedimentation phase. In addition, new research may: compare the perceptions
of managers, clients, and users to identify the points of resistance and
administrative consequences of the resistance of interest groups; evaluate the
reasons for the limited performance of government agencies, parastate
entities, and educational institutions such as champions of recruitment and selection
consultancies. Finally, quantitative studies can correlate the organizational
performance of recruitment and selection consultancies with the presence of
elements of the stages of habitualization,
objectification, and sedimentation.
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