Formalization characterizes the degree to which jobs and procedures within the organization are standardized, rule-based, and in writing.

Formalization is leads to standardized behavior and is therefore a means to obtain coordination and control in the organization. Formalization represents the rules in the organization and may vary across parts of the organization. Further, formalization varies according to the cultural environment and is industry specific.

Formalization must not be confused with standardized behavior per se. Rules may not be set by the organization, but by a professional association. This professionalization leads to standardization because professionals may act in a standardized way due to their training.
Social norms and group pressure may also lead to standardized behavior, and the organization may or may not be able to control these norms.

Measures for formalization are:

• Extent of written job descriptions
• Degree of supervision
• Compliance with job standards
• Number of written instructions
• Compliance with written instructions
• Freedom from rules
• Number of rules
  
  

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Medtronic case: Formalization