Why can organizations adopt formal structures that do not fit their everyday work?

In the context of neoinstitutionalism, organizations may adopt formal structures that do not align with their everyday technical requirements because these structures serve to enhance the organization's legitimacy within its social environment.1

According to sociological institutionalists, organizations often adopt specific institutional forms—such as particular management practices or governance structures—not because they improve technical efficiency, but because they are perceived as appropriate, standard, or necessary by key constituencies and the broader society. By incorporating these widely accepted structures, an organization signals its conformity to social norms and expectations, which helps it secure essential support and resources from external stakeholders.21

Furthermore, once these structures are adopted, they can become "institutionalized," meaning they take on value and meaning beyond their original functional purpose. Over time, these formal arrangements may become so deeply embedded and "taken-for-granted" that they persist even when they do not directly facilitate the organization's daily work.21