Research indicates that formalization is a detriment to team flexibility in decentralized organization structures,due to duties being interactive.

Question

Quizplus · Accepted Answer

Research has shown that formalization, which refers to the degree of rules, procedures, and regulations that guide decision-making and tasks, can impede team flexibility in decentralized organizations. This is because decentralized structures distribute decision-making authority to lower levels of the organization, allowing teams to make more agile decisions based on their unique understanding of local conditions. However, formalization tends to create rigid protocols that may not be flexible enough to account for the interactive and interdependent nature of team duties in decentralized structures.

Research Indicates That Formalization Is a Detriment to Team Flexibility