Formalization

Formalization in organizational structure, design, and culture refers to the extent to which rules, procedures, and policies are explicitly defined and documented within an organization. High formalization means there are clear guidelines on how tasks should be performed and how employees should behave, promoting consistency and predictability. In contrast, low formalization allows for more flexibility and adaptability. This balance influences employee behavior, decision-making processes, and the overall work environment, shaping how effectively an organization meets its goals and responds to changes.