Standardization - Formalization

 

The purpose of standardization or formalization is to make a person in an organization independent, whereby the interaction between the individuals in the organization is minimum.  The people work on the basis of rules, procedures, systems, guidelines and policies.  If the degree of such specialization is very high a person can supervise more number of people.  In other words, it affects the span of control favorably. With specialization, the delegation of work and its control has become easier.  Where standardization is not possible owing to the nature of business, the risk in business and decision making complexity span of control is reduced as the number of people handle similar range of operations. Requirement of manpower then increases making the organization top heavy.