FORMALIZATION AND SPECIALIZATION IN ORGANIZATIONAL DESIGN
Abstract
Purpose of the study: The purpose of this study was to examine the relationship between organizational design, formalization, specialization, and learning organizations. The study also sought to determine whether organizations that are high on one dimension are also high on the others.
Research methodology: The study used a systematic review of the literature. The authors searched a variety of databases for articles that examined the relationship between organizational design, formalization, specialization, and learning organizations. They also reviewed articles that discussed how formal or specialized learning organizations are designed in volatile, uncertain, complex, and ambiguous (VUCA) contexts.
Findings of the study: The study found that formalization and specialization in organizational design are dependent on organizational dimensions and the life cycle stage. For example, organizations that are more mechanistic (as opposed to organic) and that are in the early stages of their life cycle tend to be more formalized and specialized. However, organizations that are more organic and that are in later stages of their life cycle tend to be less formalized and specialized. The study also found that formal or specialized learning organizations are designed differently depending on the VUCA context. In VUCA contexts, organizations need to be more flexible and adaptable, which can be difficult to achieve if they are highly formalized or specialized. As a result, formal or specialized learning organizations in VUCA contexts tend to be more decentralized and to have flatter hierarchies.
Conclusion: The study concluded that there is no one-size-fits-all approach to organizational design. The best approach for a particular organization will depend on its specific characteristics and needs. However, the study did provide some general guidelines for designing organizations that are effective in VUCA contexts.
Recommendation: The study recommended that organizations in VUCA contexts should focus on designing organizations that are flexible, adaptable, and learning-oriented. These organizations should be decentralized and have flat hierarchies. They should also have strong communication and coordination mechanisms in place.
Keywords: Formalization, Specialization, Organizational, Design
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