Urban Fashions Corp.has become very successful in the last few years and now employs a large number of people.Serena,the owner of the firm,had been very informal in running the company.However,because of the increase in the size of the firm,she now feels that the informal ways of management have become ineffective.In order to structure the behavior of employees,Serena wants to introduce written codes of conduct and regulations into the firm.This change being introduced in the company by Serena is referred to as _____.

Question

Quizplus · Accepted Answer

Serena's decision to introduce written codes of conduct and regulations indicates a move towards formalization, which involves the establishment of formal rules and procedures to govern the behavior of employees in an organization. Disintermediation refers to the elimination of intermediaries in a supply chain, nationalization involves the transfer of ownership and control of a company from private to public hands, and decentralization involves the delegation of decision-making authority to lower levels in an organization. None of these concepts accurately describe the change being introduced by Serena.