Abstract
This paper posits that organizational rules consist of control rules and safeguard rules. The latter protect employees from arbitrary managerial decisions whereas the former regulate employees' behaviours at work. Using data obtained from ninety-two Canadian organizations, this study shows that safeguard rules are more prevalent in governments sales organizations and hotels. In addition, unionized firms and firms pursuing functionally flexible strategies also have a higher incidence of safeguard rules. Control rules are less common among prospector firms but are more common in functionally flexible firms, as well as among hotels and sales organizations.
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