Aspects of forming the institutional mechanism for organization management

Abstract

The research of organizations’ development based on the study of the institutional mechanism helps to identify problematic issues and the possibility of economical systems’ functioning, on the ground of which the directions for the enterprises’ evolvement are determined. The purpose of this article’s study is to reveal the features of institutional mechanism’s formation for managing an organization. Within the framework of this article, the analysis of basic concepts like “institution”, “institutional management”, “institutional mechanism”, etc. is conducted. It is determined that formal rules’ institutions, mechanisms and restrictions include legislation and structures that implement their activities by introducing general principles into society and forcing participants to comply with the established rules. It is substantiated that institutional mechanisms, in case of effective use in the activities of organizations, will ensure the interaction of institutions and enterprises, forming an infrastructure represented by institutional requirements and opportunities for their implementation.