CHAPTER 2: FORMALIZATION
Formalization is the formulation of principles, rules, and norms, which are
binding and regulating the functioning of an organization.
(standardization, how to behave, control)
Formalization facilitates management in such a sense, that it
takes away the need for everyday interventions from the managers
It makes employee behavior more predictable (consistent)
It also makes them inflexible(reduced innovativeness). It is
impossible to guarantee that the standard actions, behaviors, and reactions will be
an adequate response to unexpected situations. (over-formalization)
If the absence of official regulations leads to unpredictability, chaos, and inconsistencies
in organizational
functioning, then we speak of under-formalization
An organization that is based on formalization is a bureaucracy, which is the power of
the office that acts based
on official regulations. Excessive (чрезмерность) bureaucratization is known as "red
tape."
The faster the organization and its environment change, the more room for spontaneous
behavior. The rigor(строгость) of formalization means, 1) the thoroughness and
frequency of audits regarding the
observance of the official regulations, and 2) the strictness of penalties for
not observing them.
Theory
Formalization:
1. scope of duties and responsibility
2. authority over others that a person is entitled to, based on his or her position,
function, role and performed tasks. Therefore, this answer to the question: “Who can tell
whom what to do?"A short answer to that question is hierarchy.
3. circulation of what en, electronic and to some degree verbal information official
channels through which the information circulation must go is formally regulated.
The first 3 make the structure of the organization.
4. procedures for hiring, promoting, or firing workers, preparing budgets and plans,
making purchases, receiving and processing orders, setting payment and clearance
deadlines, and handling complaints.
5.
Spontaneous behaviors of organizational members can contribute to its success,
depending on the size, scale of operations, and degree of complexity of the
organization and the performed activities. In smaller organizations that perform
simpler activities, formalization is not always required.
Practical
Formalization is a necessary evil, which means that its implementation should
be limited to the absolute necessary minimum and it should be under strict
control.
Tips:
4. avoid huge monolithic organizations. Smaller units are by nature less formalized.
5. focus on efficiency. This should be a long-term focus, which assumes a continuous
and growing capacity to achieve results as well as the observance of regulations and
standards that apply externally.
6. strengthen the organizational culture and instill ethical norms into the members or
the organization.
7. tolerance with respect to mistakes. Not the mistakes should be punished, but the
negligence and lack of actions, or the recurrence of the made mistake. (Causes of the
mistake)
8. highest qualifications of employees ( they do not need restrictions, because they
are capble of acting correctly w/o instructions.) )
9. reviews of implemented formal regulations ( Asking what is useful and what is
not)
10. computer system. They should be adapted to the rapidly changing tasks and
conditions.
Carefulness and full awareness of the functions of formalization as well as of the various
risks that it brings
about.
Formalization is like a sharp knife that can be used consciously, or you
can hurt yourself and others severely with it.
A selection of theories and beliefs
Max Weber's Theory (one of the founders of sociology)
According to Weber's model, a bureaucratic organization is characterized by:
continuous functioning; division of power; an established hierarchy and control
system; separation of private life and beliefs from functions; advancement-based
on skill and merit; and a clear definition of procedures.
He identified bureaucratism as a shortcoming of bureaucracy.
Ideal bureaucracy is characterized by the impersonality of procedures
(беспристрастность),
promotions, regulations, a hierarchical system, and specialization. This
definition of bureaucracy gives us a rational organization, based on legal or
regulatory authority and not on traditional or charismatic authority.
Henry Fayol's Theory (creator of the theory of m)
Principles of management:
6. Division of work.
7. Authority: Formal authority is based on the function; personal authority is based
on character and on relationships with employees.
8. Discipline
9. Unity of command. Every employee should receive orders from only one superior.
10. Unity of direction: Each group that has the same objective should be directed by
one manager with one plan.
11. Subordination of individual interests to the general interest
12. Remuneration: Workers must be paid a fair wage.
13. Centralization: Decisions should be made as high up in the hierarchy as possible.
14. Scalar chain: The line of authority from top management to the lowest ranks.
15. Order
16. Eqity (равенсвто справедливсть)
17. Stability of personal employment
18. Initiative
19. Esprit de corps. (power in group) A feeling of pride and mutual loyalty shared by
the members of a group.
Fayol also suggested that the formal structure of an organization should determine who
needs to communicate with whom and how. At the same time, he knew that
employees from different departments often have to communicate with each
other. Therefore, Fayol proposed that with their superior's permission,
employees should be allowed to communicate directly with each other. This
principle became known as "Fayol's bridge”.
