What is meant by formalization in an organization?

Formalization in an organization refers to the degree to which rules, procedures, and established regulations govern the way tasks are performed and how decisions are made. It emphasizes the structured and systematic approach that organizations adopt to ensure consistency, predictability, and clarity in operations. A higher level of formalization means that employees have clear guidelines to follow, which can lead to efficiency and clarity in their roles. This is particularly important in larger organizations or those in regulated industries, where defined processes help maintain standards and compliance.

In this context, the other options do not capture the essence of formalization. Informal interactions among employees indicate a less structured environment and are not aligned with the concept of formalization. Similarly, while the rigidity of management hierarchy and a lack of written procedures might relate to organizational structure and culture, they do not directly define the degree of formalization within an organization. Instead, formalization is specifically about the presence and application of documented rules and procedures that dictate organizational operations.