Definition: is the process of establishing specific rules in a company to regulate procedures, policies, and responsibilities of the workers, departments, and the organization as a whole. Additionally, formalization can lead to the creation of clauses that specify the mission of the company and the relationships between different levels of the organization’s hierarchy. The further this process is developed, the less freedom employees have regarding their activities and duties. If a firm is heavily formalized, it’s a sign of the directors’ tendency towards establishing a bureaucratic organization.
In a Sentence:
Due to the unusually high level of formalization for such a small business, each worker felt a bit uncomfortable with how specifically defined his role at the organization was.
The formalization process was a success, as all employees now had a better understanding of the corporate policy regarding the worker-management relationship.
Lizard Corp. has recently begun the formalization process to introduce new procedures, hoping to increase the efficiency of the day-to-day operations.
Synonyms and related words: bureaucracy, centralization, bureaucratic organization, organizational structure, terms and conditions