Strategic Management: Formulation and Implementation

The Role Of Formalization

Formalization is the degree to which written policies, rules, procedures, job descriptions, and other documents specify what actions are (or are not) to be taken under a given set of circumstances. Policies, rules, procedures, and other means of formalization help bring about vertical coordination by specifying expected behaviours in advance. In term of the design decision that determine organizational structure, formalization is the result of high specialization of labour, high delegation of authority, the use of functional departments and wide spans of control.

Span Of Management

Span of management, or span of control, is the number of subordinates who report directly to a specific manager. Generally, a span of control comes down to the decision of how many people a manager can effectively oversee; that is, will the organization be more effectiveif the manager's span of control is relatively large or small? Span of control is important to vertical coordination because it has a direct bearing on the degree to which managers can interact with and supervise subordinates. In general, research suggests that spans of management can be wider under the following conditions: