It has been observed that several social bodies are establishing few social standards related to the operating procedures. Accordingly, a standard set of rules and procedures are granted on the basis of which individuals in a society are able to develop a behavior in accordance with guideline. It is also observed that during the institutional process, a shared set of normative values as well as assisting activities has been developed. This process is popularly known as logic of appropriateness (March & Olsen, 1989).
In order to increase or maximize self-interest, every individual not only considered all available option, but also considered the routine as well as habits for building a harmonized society. More specifically, institutions are a collection or set of interrelated rules as well as routines that defines appropriate action, which identifies the relationship between roles and situations. As per institutionalization, individuals’ action is recognized as a technique of satisfying all compulsions, which are related to a particular social role or social identity (March & Olsen, 1989). In institutional dynamics, rational as well as power are identified to be playing an important role for framing strategies as well as making decision. It is also depicted that by focusing on several points of interaction as well as stresses among societal structure along with individual structure, institutional dynamic can be explored. There are few fundamental factors that are considered by institutions such as power as well as sensible decisions of individuals that intentionally select several strategies, which are useful in providing shapes to the structure. It has been noted that to change the environmental as well as individual initiatives, structural arguments and internal dynamic within an institution can guide the procedures of changing institutional reactions. During the selection