What does formalization refer to in an organization?

Formalization in an organization pertains to the degree to which rules, procedures, and standard operating protocols are established and enforced. This concept emphasizes how formal rules guide and affect employee behavior within the workplace. High levels of formalization typically indicate that employees are expected to follow specific guidelines and procedures, which helps ensure consistency, predictability, and compliance across various organizational processes.

In this context, formalization serves as a framework that shapes the way employees perform their tasks, interact with one another, and align their actions with organizational goals. For instance, formalized structures can help establish clear expectations and accountabilities, ultimately influencing how effectively an organization can operate.

The other options speak to different concepts that do not align with the formalization definition. Informal communication focuses on those unstructured interactions among employees and does not capture the essence of rules and procedures. The absence of rules and procedures indicates a lack of formalization, which would lead to unpredictable behavior, rather than a defined influence on behavior. Lastly, the process of hiring new personnel is related to recruitment and is separate from the concept of formalization, which is centered on established rules and their impact on behavior within the organization.