Institutionalization is never bureaucracy and bulkiness. On the contrary, it is the successful organization and increase in productivity
If we give a brief definition of institutionalization, institutionalization can be defined as the creation of a structure that allows an enterprise to maintain and develop its activities without depending on the presence of people. The main purpose of this is to ensure that the firm does not have bosses, managers, critical personnel, etc. it is the fact that it becomes independent of people and ensures its continuity.
In order for companies to be institutionalized, it is necessary to have company goals first, and then to create a staff in accordance with this goal. After this becomes clear, the procedure, instructions, etc. are made that ensure the full operation of the system. This process is carried out together with all employees. Otherwise, the process will end in failure.
Then, the work flowcharts and the forms to be used in the system are clarified. What’s been done so far is to keep things running smoothly at the company. So, the answer to the questions of who will do what, when and how will be clarified.
At the next stage, the command structure of the order, the matrix of powers and responsibilities is clarified. Otherwise, there will be chaos, as it will be unclear who will give whom what instructions.
Finally, the necessary infrastructure is created for the reporting and analysis of the working system. Here, reports covering many issues ranging from whether the system is working healthily to whether it is successful according to the targets are produced, which opens the way for the management to make the right determinations and make the right decision. After the basic structure is completed, an internal audit system should be established to ensure its healthy functioning and sustainability.
Since there is a cash flow behind all these transactions, an action plan and a budget based on this plan should be created.
So far, we have talked about a part of the institutionalization process. Of course this is not all. For example, it is necessary to support the top and intermediate dec managers with training.
Why is institutionalization difficult in our country?
We used a phrase when describing institutionalization above. the phrase ”the ability of an enterprise to continue its activities without dependence on the presence of people” is the most important reason for the difficulty of institutionalization in our country. The issue is neither related to funding nor other inadequacies. It’s more about the ego that companies can’t do without me. This ego can be found decently in both intermediate and peak managers. In fact, the reason for the formation of this ego is the injustice of internal management of companies that have not been institutionalized, and the lack of career planning. Institutionalization cannot occur if the intermediate deceleration manager enters the expectation that he will be sent when an alternative is found instead or that he will receive less fees.
As companies grow, they should prepare their employees for higher-level management in a way that is appropriate for this growth and set up the promotion system well. Then these problems will gradually subside.
In summary, Institutionalization cannot be carried out in companies that are managed unfairly, in a structure where there are intermediate dec managers who are afraid of being fired at any time.
Remember that before you are going to lay asphalt on the road, you need to arrange and consolidate the bottom. Otherwise, at the slightest load or in the rain, the asphalt will collapse.