How are formalization, informalization, centralization, and decentralization interrelated, and how can organizations use them to balance differentiation and integration?
How are formalization, informalization, centralization, and decentralization interrelated, and how can organizations use them to balance differentiation and integration?
Formalization can be defined as the level to which the procedures, policies, job descriptions, and rules of an organization are written and explicitly articulated.
Informalization in an organizational setting means the personal relations, relations, and interactions of people in an organization that is formed informally and unofficially.
Centralization can be defined as the concentration of management and decision-making power of the top-level hierarchy in an organization with the objective of coordinating human, financial, and other business resources.
In a decentralized setting, the top management delegates the daily operations and decision-making power to middle-and lower-level managers.
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