Question

Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to: Multiple Choice
a. face ambiguity as a result of a lack of formal rules and procedures.
b. exhibit high levels creativity and experimentation.
c. feel empowered to implement new solutions.
d. face morale and motivation problems.

Answer 1

Answer:

The correct answer is letter "D": face morale and motivation problems.

Explanation:

A high degree of formalization will result in reduced creativity as workers are told to behave in a specific way. In such organizations, strategic decision-making often happens only when there is a problem. A highly formalized structure is usually related to reduced motivation and morale issues among employees.