Abstract
Formalization is one of the pillars of a bureaucratic company. It is manifested by a high number of formally given rules, procedures and written guidelines. These documents guide the way of employees’ conducting and their activities. Precisely defined rules determine the way of work and based on rules the activities are divided among the employees of the company. They feel that the rules are readable, clear and valid for everyone. Research shows a positive correlation between the effectiveness of business activities and the degree of formalization. On the other hand too detailed rules prevent creativity, initiative and self-development. Employees require rules and written materials from the sovereign’ supervisor to solve every problem, often one that the employees themselves can easily solve. Our contribution is dedicated to formalization and its impact on employee initiative to make changes in the organization. In a sample of 190 companies, we confirmed that with the increasing formalization, the initiative of employees to change has been decreasing.
Highlights
Formalization is represented by the rules, regulations, procedures and other written documents that organizations create to support and coordinate different and challenging tasks through behavioural regulation
Our contribution is dedicated to formalization and its impact on employee initiative to make changes in the organization
We have found that almost 36% of businesses report a high level of formalization, while reporting large or high levels of formalization. full coverage of its activities by internal procedures and formal documents
Summary
Formalization is represented by the rules, regulations, procedures and other written documents that organizations create to support and coordinate different and challenging tasks through behavioural regulation. The more tools to streamline the activity and the more definitions, descriptions and internal procedures the organization uses, the higher the level of formalization. A high level of formalization is typical for a bureaucratic enterprise. The opposite of this is that management trusts employees - their knowledge, skills and judgment - and does not insist on such a high degree of formalization. Weber [2] himself defined it as a way of regulating activities in an organization through formal rules. Organ and Green [3] say that formalization is a way of controlling individual activities through rules and procedures
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