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  • Essay / Formalizing Organizational Structure, Its Advantages and Disadvantages

    Table of ContentsAdvantagesDisadvantagesToyotaRules and Regulations:HuaweiRules and Regulations: SimilaritiesThe dimensions of organizational structure provide perspective on how the different components interact. There are four dimensions, namely differentiation, integration, formalization and centralization. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an Original Essay Formalization applies to the degree of structure to an organization's rules, procedures, and methods of carrying out tasks. More specifically, highly formalized entities are those in which the laws governing desired actions are well defined and respected. On the other hand, organizations with a minimal degree of formalization have a limited number of uniform procedures and laws. Although formalization is often communicated through formal means and documents such as work requirements, this should not necessarily be the case. Informal behaviors, such as procedures reinforced by community norms or informal conversations with other association participants, often contribute to the degree of formalization. Formalization refers to the rules and procedures followed by an organization to an extent that includes training. It standardizes or regulates behavior and determines the relationship between the organization such as the relationship between the leader and the followers. In terms of design, formalization calls for strong specialization of work and generally exercises a wide scope of control. The main objective of formalization is to reduce differences in employee behavior. This can be done through formal and informal means. Formal is standardized based on written rules.BenefitsMakes employee behavior more predictable because they react to problems in the same way.In the event of a problem, the employee can turn to a manual or procedural guidelines.Allows people in the same industry to communicate and share resources more easily. .Have the same goals and the divisional structure is well coordinated.DisadvantagesSince employees behave in the same way, this can lead to a high degree of innovation in a formalized company. (A high degree of formalization can lead to innovation because employees are accustomed to behaving in a certain way). Since employees behave in the same way, this leads to reduced motivation and job satisfaction, which also reduces the pace of decision-making. All answers are specified in the rule book or guideline book as customers have various questions. Reduced information flow in the organization due to constant reference to guidelines, so they understand less how other departments affect the business. Cooperation and coordination suffer. Motivated employees tend to solve problems in their own way when they cannot find the solution in the manual.ToyotaFormalization at Toyota is very important due to the Toyota Production System (TPS) having a unique principle called "just" production. on time.”Rules and regulations: Raw materials are delivered to the assembly line exactly when they are to be used. Front-line employees have the authority to stop production when they see a problem. Requires all employees to be experts at what they do. Do not accept manufacturing line defects. This principle reduces wastage of resources and..