ORGANIZATIONS AND INDIVIDUALS

The employees who work in more bureaucratized and with

more autonomy are tend to be more intellectually flexible,
open to new experience and more self-directed than those
working in different context. (Kohn and Schooler)

Another factor is the way people look at their work i.e.

Idiosyncratic behavior.
Barley and Kunda’s,2004 research
EXTERNALITIES
 “Externalities” refers to the result of an economic
transaction that affect others who did not participate in
the transactions.
 Externalities can be positive or negative.

Positive Externalities -The non participating party receive

benefit from the transaction.

Negative Externalities- The non participating party suffer

some damage or have to pay some cost. Negative
externalities are more salient.
SOCIAL STRATIFICATION

It can be classified on the basis of Religion, Caste, Place of

birth, Ethnicity, Income group Etc.
FORMALIZATION

- Formalization means how jobs in the organization are

standardized by rules and regulations. It has two aspects..
- Job Codification- It is the extent to which job descriptions are
specified and represents the degree of work standardization.`
- Rule Observation- It is a measure of whether rules are
employed or not and indicates the degree to which job
occupants are supervised in conforming to the standards
established by Job Codification.
 Organizational Consequences of Formalization

 Individual Consequences of Formalization

CENTRALIZATION

It refers about distribution of decision-making responsibility

and power within an organization.

- The extent to which one is allowed to work without undue

interference of superiors.
- Rules are often used to govern the actions of the organizational
members.
- Degree of centralization of organization is indicator of how
organization assumes about its members
*High centralization- Tight control
*Low centralization- Members can govern themselves
RELATIONSHIP BETWEEN COMPLEXITY, FORMALIZATION
AND
CENTRALIZATION

 As organization gets bigger both formalization and

complexity increases.

 As organization become more complex, they become more

formalized.

 High complexity Low centralization

High Formalization