When an organization has a high level of formalization, it will generally:
A) promote innovation and flexibility.
B) decentralize decision-making authority.
C) centralize decision-making authority.
D) encourage mutual adjustment.

Question

Quizplus · Accepted Answer

Formalization refers to the degree to which an organization has standardized rules, procedures, and processes in place. In a highly formalized organization, decision-making authority tends to be centralized, with higher-level management making decisions and distributing tasks to lower-level employees. This centralized decision-making structure helps ensure consistency and control, but can limit flexibility and innovation. Therefore, option C is the best choice as it states that a high level of formalization in an organization will generally centralize decision-making authority.

When an Organization Has a High Level of Formalization, It