Practical sheet | REF: FIC1716 V1

The six key elements of an organizational structure

Author: Jean-Pierre PAYRE

Publication date: November 10, 2021 | Lire en français

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6. What is formalization?

Formalization is the extent to which work is standardized and the behavior of organizational members determined by formal rules and procedures.

A highly formalized organization, for example, uses job cards describing all work rules and procedures.

This formalization corresponds to a bureaucratic organization, and employees have very little latitude in their work processes.

In large international groups, formalization helps to ensure organizational consistency and facilitates control of the application of common processes and procedures.

However, these companies mitigate against the standardization of explicit rules, knowing that too many detailed rules or procedures can be counter-productive. It is thus recognized that it is necessary to give employees more leeway to make decisions and improve...

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