Core Values and Formalization as Determinants of Individual Behavior in an Organization: A Managerial Perspective

Core Values and Formalization as Determinants of Individual Behavior in an Organization: A Managerial Perspective

Ilona Swiatek-Barylska (University of Lodz, Poland)
DOI: 10.4018/978-1-5225-2480-9.ch002

Abstract

A person starting a professional career becomes a member of a chosen organization and begins to function among other people in a defined organizational culture and legal space. As he or she is an adult with a defined personality, knowledge and system of values, the manager can influence the employee's behavior not by changing the person but by shaping the work environment. As flexibility is the number one principle in organizational design nowadays, managers have to create a work environment making decisions on the continuum between formalization and management by values. The chapter describes the consequences of formalization and values orientation for individual organizational behavior, as well as outcomes such as commitment, job satisfaction and turnover intention rate.
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Background

In 1961, Burns and Stalker proved that it is the environment which determines the management process in a company (Burns, Stalker, 1961). As companies face different types of changes they not only have to react to them, but also anticipate new conditions. The transformation of the organization’s environment from the 1960s till now is presented in Figure 1.

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